Abraham Jewett  |  August 18, 2021

Category: Fees

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Netflix and Hulu
(Photo Credit: jadimages/Shutterstock.com)

Netflix and Hulu New Jersey Fees Class Action Lawsuit Overview:

  • Who: Two New Jersey townships lodged a class action lawsuit against Netflix, Inc and Hulu, LLC .
  • Why: The plaintiffs say Netflix and Hulu failed to register or pay fees required by state law, depriving the areas of revenue.
  • Where: The class action lawsuit was filed in federal court in New Jersey.

Streaming giants Netflix and Hulu failed to pay fees required under the New Jersey Cable Television Act (CTA), a new class action lawsuit alleges. 

Lead plaintiffs, Borough of Longport and Township of Irvington, want to represent other areas of New Jersey deprived of an important source of revenue through fees that Netflix and Hulu are supposed to pay. 

Are Netflix and Hulu Dodging NJ Fees? 

The plaintiffs claim Netflix and Hulu are required by the CTA to pay municipality franchise fees equivalent to a percentage of their gross revenue. The CTA oversees and imposes franchise fees on entities known to offer subscriptions for video programming or cable services. 

“Netflix is the world’s leading subscription entertainment service, offering paid streaming memberships around the world to view TV series, documentaries and feature films across a wide variety of genres and languages,” the class action lawsuit points out. 

“Hulu aggregates acquired and original television and film entertainment content for distribution to internet-connected devices. Hulu offers a subscription-based service with limited commercial announcements and a subscription-based service with no commercial announcements,” continues the complaint. 

Netflix and Hulu qualify as they offer subscription streaming services for viewers to watch movies, television shows, and other programming that could be considered comparable to what is offered by cable television providers, the class action lawsuit alleges.  

The CTA requires any entity seeking to provide cable in the state to apply for individual certificates of approval with the New Jersey Board of Public Utilities, claim the plaintiffs. These certificates need to get the consent of either municipalities or a system-wide franchise. 

The CTA is then able to impose obligatory fees on accepted entities, with a percentage of the proceeds going towards the municipalities. 

The plaintiffs allege that neither Netflix or Hulu attempted to obtain the proper certificates and are thus providing their services in New Jersey without authority and in direct violation of the CTA.

Both Netflix and Hulu have faced legal action before. A 2020 class action lawsuit claimed that Hulu web browser quality is intentionally throttled in order to push app downloads. 

In 2016, class action lawsuit alleged that Netflix failed to honor millions of “grandfathered” subscription plans with price guarantees.

Do you believe Netflix and Hulu are in violation and need to pay up? Let us know in the comments! 

The plaintiffs are represented by James E. Cecchi and Kevin G. Cooper of Carella, Byrne, Cecchi, Olstein, Brody & Agnello, PC.  The Netflix and Hulu Class Action Lawsuit is Borough Of Longport, et al. v. Netflix, Inc. et al., Case No. 2:21-cv-15303-SRC-MAH, in the U.S. District Court for the District of New Jersey.


Don’t Miss Out!

Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!


Read About More Class Action Lawsuits & Class Action Settlements:

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

11 thoughts onNetflix and Hulu Failed to Register, Pay Fees Required Under New Jersey Law, Class Action Lawsuit Alleges

  1. Michelle Bennett says:

    Add me please

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.