Netflix may change settlement terms

According to the Associated Press, Netflix might revise the terms of its class-action settlement:

LOS GATOS, Calif. Los Gatos-based Netflix appears ready to ready to revise a proposed class-action settlement affecting millions of consumers.

The online DVD rental company yesterday indicated its willingness to drop the automatic renewal clause when its lawyers updated a San Francisco Superior Court judge on the settlement talks.

As it had been written, unless participating consumers canceled after the free month, the company planned to begin automatically charging for the service.

The Federal Trade Commission protested the settlement last month, arguing the automatic renewal feature smacked of a promotional gimmick designed to help Netflix attract more subscribers.

The original class-action complaint alleges Netflix exaggerated how quickly it delivers movies to customers.