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A class action lawsuit alleges that Netflix Inc. broke the contract it made with millions of customers who have “grandfathered” subscription plans with price guarantees.
According to the Netflix class action, “For a period of time, Netflix solicited persons to subscribe to Netflix’s streaming service by guaranteeing that Netflix would not increase monthly subscription prices as long as the subscribers maintained the subscription service continuously.”
The class action asserts that “Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices.”
Plaintiff George Keritsis says he became a customer of Netflix’s video streaming service some time around 2011 and has maintained his monthly subscription ever since.
Keritsis contends that he saw an advertisement from Netflix saying that its streaming plan would be “grandfathered,” or guaranteed, at the price of $7.99 per month “for so long as Plaintiff continuously maintained his Netflix subscription.”
The plaintiff alleges that he called Netflix, and was told the same thing by a telephone representative. Keritsis says he relied on those representations when he signed-up for Netflix streaming service, and as he has continuously maintained his account.
According to the Netflix lawsuit, those representations to Keritsis, and other customers, created a contract which Netflix has apparently followed until now.
The complaint states that in May of 2014, Netflix increased the price of its streaming service for new subscribers in the U.S. to $8.99 per month. Then in October of 2015, Netflix again raised its monthly rate for its streaming service for new customers to $10.99 per month.
However, in April of 2016 Netflix allegedly announced that it would “phase out this grandfathering gradually over the remainder of 2016, with our longest tenured members getting the longest benefit.” The complaint states that approximately half of Netflix’s 22 million customers are currently grandfathered in at the $7.99 monthly rate.
Keritsis claims that he was billed $7.99 per month for his Netflix streaming service until October of 2012. Since then, he has paid $8.68 per month, according to the complaint.
The plaintiff alleges that on June 22, 2016 he received an email from Netflix stating that “Your special price is now ending and as of 7/22/16 your new price will be $9.99 per month.”
The Netflix grandfathered plan price increase lawsuit requests certification of a Class of “all persons who entered into an agreement with Netflix for a streaming plan at a subscription price that Netflix promised not to increase for as long as they continuously maintained their subscriptions.”
The lawsuit seeks an injunction, or court order, stopping Netflix from breaching the alleged contract, as well as payment of “compensatory damages and any other damages authorized by law.”
Keritsis is represented by Noah M. Schubert and Robert C. Schubert of Schubert Jonckheer & Kolbe LLP; and Thomas G. Shapiro of Shapiro Haber & Urmy LLP.
The Netflix “Grandfathered Plan” Price Increase Class Action Lawsuit is George Keritsis v. Netflix Inc., Case No. 3:16-cv-03675, in the U.S. District Court for the Northern District of California, San Jose Division.
UPDATE: The Netflix Class Action Filed Over ‘Grandfathered’ Price Increase was voluntarily dismissed on July 22, 2016. Top Class Actions will let our viewers know if a similar case is filed.
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412 thoughts onNetflix Class Action Filed Over ‘Grandfathered’ Price Increase
I want to be apart of this suite I to have Netflix. Who do I need to contact about this matter.
I’m still being billed at $7.99 and I haven’t received an email stating that anything will change as of yet
same here :)
I just signed into my Netflix after an update the other day and before the show options came up a notice saying my payments are gonna be changed as well
@ Brooke Sue, you won’t get an email, you have to check your Netflix account. I didn’t know anything about the increase because I too was told I was locked in at the $7.99 price, then i saw this lawsuit so I checked my account and sure enough it showed my bill increase for this month.
has anyone gotten the actual way to be added to the lawsuit? We were grandfathered in as well, at 7.99, was not told by NETFLIX that there would be a price increase. We heard about it two days prior on the NEWS. We were only told about the “increase” after Netflix pulled 13.99 from our account without warning. I am not only frustrated, but mad that there is no ‘recourse’. If this had been cable, we could have sued.
I had the same issue
I too am a grandfather client who bill went from a promised 7.99 till now 9.99 a month payment …
me to from 7.99 now 9.99 think on getting rid of it now
Me too! Im gonna cancel mine, had it since 2007! They said, it would not be a price increase for old customers.
need to join this class action how do i get the form to do so rickster568@hotmail.com
Yes after having Netflix for I was just advised that my monthly charge of $7.99 would be raised to $9.99. I don’t think that is right after being told 5 years ago that the price would never change.
I agree. We are in the same boat. To add insult to injury, I got the notice about the price hike the same day as the message about the new Star Trek show being available on Netflix in 180 different countries, but not the US. Not cool.
How can we join? Mine is set to change July 16,2016 I’m pretty upset!
Me too, what do we need to do?
Mine went up to 10.00 ugh
Yes my monthly charge went up to $10
How are the amounts all different? Mine went from 7.99 to 11.99 ? like a year or two ago! I thought it was across the bored, guess not wth! Lol
I think taxes vary based on your area?
It may also have to do with the number of screens you get in your membership? I got an announcement about an increase too. Not happy.
I was “grandfathered” in with 3 streaming accounts….they raised rates & took me down to 2 streaming accounts….grrr
Our bill started at 7.99 and we now pay 13.00
Yes, there was an increase I received a charge for 13.99