Netflix customers recently received an email about a class action suit and settlement payment from Walmart. If you’re one of the lucky customers who qualifies for the settlement, you may be wondering why you’re getting money from Walmart. A suit brought against Walmart and Netflix charges that the two companies unofficially struck a non-compete agreement to stay out of each others’ markets; Walmart would stay out of the online DVD market while Netflix wouldn’t sell new DVDs. Customers paid a premium for each service while the companies profited. The Monopoly Man would be so proud.
Netflix denies that the deal was ever struck and is still in litigation; if they settle or lose the case, expect to be contacted about claims in early 2012. As the email explains, customers included in the suit don’t need to take any action unless they want to individually sue Netflix, for those of you who want to hire your own lawyer for the chance of making a few hundred dollars. Walmart’s initially proposed settlement of $27,250,000 was to be paid out exclusively, and obnoxiously, only in Walmart online gift cards. Netflix complained that the settlement was going to unfairly drive business to Walmart’s new online DVD rental program Vudu, and the terms of the settlement were changed (No one seems to have calculated that this settlement would have also been unfair to the plaintiffs). Walmart will get details for 40 million disgruntled Netflix customers, but the current settlement from Walmart is to be paid out in both cash and Walmart gift cards.
Claim forms have to be postmarked or submitted online by February 14, 2012. Exclusions and objections are due at the same time. If you want to claim that cash payment, you have to print and mail in the form; the more convenient online form submission is only good for the gift cards. Individual payment amounts wont be calculated until they know how many people have submitted claims (so maybe don’t spread this around). We here at Techcitement encourage you to mail in the form and get your as yet undetermined amount of cash — spend it all in one place, but think long and hard about whether that place should be Walmart.
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