It was back in 2004 that the consumer class-action lawsuit Chavez vs. Netflix was brought because of the DVD rental company's policy generally known as "throttling." The terminology refers to Netflix practices that have the effect of slowing the flow of discs to customers who rent them at a high rate. In the lawsuit the plaintiffs alleged that the company misled consumers when it advertised it would provide subscribers unlimited disc rentals with one-day delivery. Although admitting no wrongdoing, Netflix eventually agreed to a settlement in which it offered free rentals or upgrades to those who were subscribers prior to January 15, 2005. Now, four years after legal action began, the benefits are finally becoming available to those who joined in the class-action lawsuit. Current Netflix subscribers who qualify are automatically receiving free upgrades to the next plan level for one month. Former subscribers who are members of the settlement class can, anytime within the next year, get a free month of rentals. At the end of the free month, the account will automatically be cancelled. Netflix has posted more detailed information at http://www.netflix.com/settlement.
