Netflix New Price Hike Could Actually Be Against The Law

I am sitting here wondering if Netflix, Inc. (NASDAQ:NFLX) new policy is actually legal. Bait and switch techniques are against the law in every state of the USA; this seem to me to be exactly what Netflix did to their subscribers. A few months back I saw an ad on Xbox live touting new Netflix subscriptions starting at $7.99 per month. I thought this may be a good time to renew my long canceled subscription.

When I logged into Netflix I found that the $7.99 was for a streaming only subscription and I would have to pay an additional $2.00 per month if I wanted to get DVDs, from a DVD rental company. You say you want blu-ray disks?…that will be $2.00 more!

I finally settled with the $9.99 one non-blu-ray disk, unlimited streaming package. Just a few months into my subscription I get an email stating my subscription will be increased by 60%. Netflix was kind enough to let me know they would take care of the billing adjustment I need not do anything.

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

So my question for the Attorney General of every state Netflix does business in is- Isn’t this a classic bait and switch? Netflix went on an aggressive marketing campaign with reduced fees to capture as many customers they could. Netflix did this knowing they would be jacking up prices 60% a few months later. If Netflix were a utility, a cell provider or a cable provider they would be before a grand jury tomorrow. Even Used Car lots get shut down for this practice.

So like the many thousand that are pissed off in the forums, blogs and facebook pages across the web…I will be canceling my Netflix subscription.