SETTLED:

Netflix Free Trial and Auto-Renewal Quebec Class Action

Quebec Superior Court file #

500-06-000798-161;

What this case was about:

Plaintiff alleged that Netflix violated paragraph c of section 230 of Quebec’s Consumer Protection Act by engaging in negative option billing practices. Under Quebec Consumer Protection law, it is illegal for merchants to automatically charge consumers, to whom they have provided services or goods free of charge (or at a reduced price) for a fixed period, the regular price for said goods or services at the end of the fixed period.

Class Description:

Class:

Every consumer, pursuant to the terms of Quebec’s Consumer Protection Act (“CPA”), who since July 4th, 2013 (the “Class Period”), was provided services or goods at a reduced price (the “Reduced Price”), for a fixed period (the “Fixed Period”), by any of the Defendants, and who, after the Fixed Period, was required to send a notice to any of the Defendants indicating that he/she does not wish to obtain the services or goods at the regular price (the “Regular Price”);

Sub-class:

Every consumer, pursuant to the terms of Quebec’s Consumer Protection Act (“CPA”), who since July 4th, 2013 (the “Class Period”), was provided services or goods free of charge, for a fixed period (the “Fixed Period”), by any of the Defendants, and who, after the Fixed Period, was required to send a notice to any of the Defendants indicating that he/she does not wish to obtain the services or goods at the regular price (the “Regular Price”);

Terms of the Settlement:

Compensation to class members under the terms of the Settlement Agreement, still subject to Court Approval, is as follows:

  • Each Class Member will be entitled to receive a refund of the subscription cost paid during their respective one-month refund period from Netflix, as detailed at paragraphs 12 and 16 of the Settlement Agreement.

Additionally, Netflix will cease the practice of giving a free trial and then automatically charging consumers in Quebec the regular price thereafter.

Status

Class Action Authorized for Settlement Purposes by the Honourable Stéphane Sansfaçon, J.C.S., of the Superior Court of Quebec on November 1, 2017. Settlement Approval Hearing scheduled for April 13, 2018.