Netflix Changes Terms of Service, Makes It Difficult to Sue

From DailyTech: Netflix recently changed its terms of service to include a passage which asks users to surrender their right to take Netflix to court.

The addition to Netflix's terms of service says that users who agree have no right to take Netflix to court, no matter what the situation is. However, users can still file a complaint or go to small claims court.

The passage in the Arbitration Agreement is as follows:

"These Terms of Use provide that all disputes between you and Netflix will be resolved by BINDING ARBITRATION. YOU AGREE TO GIVE UP YOUR RIGHT TO GO TO COURT to assert or defend your rights under this contract (except for matters that may be taken to small claims court). Your rights will be determined by a NEUTRAL ARBITRATOR and NOT a judge or jury and your claims cannot be brought as a class action."

According to Tech Crunch, the change was likely made in response to a class-action suit that Virginia residents filed in 2011. The suit claimed that Netflix held on to the residents' streaming and DVD records two years after they terminated their service. Netflix ended up losing this case, and had to pay up $9 million.

Netflix is clearly keeping a watchful eye on its video streaming/DVD empire of over 23 million customers. In addition to protecting itself from lawsuits, Netflix is also working to build up its service and expand into new realms, like cable. However, cable doesn't seem to like Netflix quite as much -- Comcast said it wouldn't have anything to do with Netflix.

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