In a little-known practice derided by critics as "throttling," an automated system used by the Netflix online DVD rental service delays heavy renters' movie shipments. That means customers who pay the same price for the same service are often treated differently, depending on their rental patterns. The practice has sparked legal action, and a hearing on a revised settlement proposal concerning the Netflix system is scheduled for Feb. 22 in San Francisco.
February 13, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Manuel Villanueva realizes he has been getting a pretty good deal since he signed up for Netflix Inc.’s online DVD rental service 2 1/2 years ago, but he still feels shortchanged.
That’s because the $17.99 monthly fee that he pays to rent up to three DVDs at a time would amount to an even bigger bargain if the company didn’t penalize him for returning his movies so quickly.
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