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NetFlix, Inc. [05/23/2006]
Netflix has settled class action lawsuit brought against the company last year for allegedly fooling potential customers by advertising "unlimited" DVD rentals and "one day delivery." Current and former Netflix customers will receive a one-month perk.

According to the settlement, Netflix, while not admitting any wrongdoing, will provide customers with a one-month service level upgrade free of charge. This means that Netflix users subscribed to the 3 DVDs at-a-time program will be upgraded to 4 DVDs at-a-time for one month. After the free month, customers must remember to downgrade their service manually or face higher fees.

Former customers who were Netflix members prior to January 15, 2005 will receive a free month of service if they subscribe to Netflix once again. The membership and monthly charges will continue on a monthly basis after the initial month.

To receive any benefit, eligible customers must complete an online registration before February 17, 2006. Those who wish to opt-out of the settlement must send a notice by December 28, 2005. A final hearing is scheduled for January 18, 2006 to determine if the awards are fair.

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