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View Full Version : Netflix Customers BEWARE!!!




dapetrun
Jan 29, 2011, 12:19 PM
Several years ago when I was a member of the Netflix movie rental service I had noticed well into my second year of membership that Netflix was charging my credit card the incorrect percentage of state tax for my area of residency. I e-mailed them to complain and asked it be corrected. I didn't want a credit, just the error corrected. Months went by and there was no reply and no correction. I followed up with a few phone calls over the next few months and my request for correction to this error was subsequently ignored each time. They never responded. Months later I decided to cancel my membership due to this (and the little free time I had to watch movies).

Fast forward several years into my retirement and a new Netflix membership and guess what I find? Yep, they are still charging western Pennsylvania residents 7% instead of the 6% state tax they should be. Obviously, let me say right up front that I could care less about the $.10 per month over charge they are costing me but it is the basic principal of ignoring the customer and refusing to fix their mistake and that is what really pisses me off! When you think about the number of potential customers Netflix may be charging incorrectly each and every month over the past 10 years (in every state, not just my own), the dollar amount becomes staggering and very disturbing. I doubt if Netflix is making the same mathematical error when it comes time to pay my state their tax revenue due them. Makes you wonder if it is an error or a purposeful ploy that someone in Netflix has devised to increase revenue.

For you movie buffs, remember the part Richard Prior played in one of the Superman movies? He was hired at a large company as some sort of computer programmer and asked a fellow worker "what happens to these fractional pennies leftover in the payroll formula?" (for the many thousands of company employees). "Oh, those pennies just get rolled-over back into the corporate account," was the answer. Richard Prior decided to re-program the company computers to roll those fractions into his paycheck and on payday his weekly earnings was like $70,000!! Funny as hell, but it stuck in my mind as not being that far fetched and how easily it could happen.

So, HOW MANY OF YOU NETFLIX CUSTOMERS HAVE SCRUTINIZED YOUR CHARGES? Please reply with your state and locality if you find an error. I am going to write to my State Attorney Generals' office and ask them to look into it.

If that fails, I will be looking for a real hungry ambulance chaser to file a class action lawsuit against Netflix that will cause their accounting department a nightmare the likes of which they have never imagined!

Here is a handy zip-code tax calculator to help determine your correct tax percentage for your area of residency.

http://www.Zip2Tax.com/z2t_lookup.asp



Apple OC
Jan 30, 2011, 01:30 PM
Back to the OP thought ... I believe many companies use a practice like this to generate Revenue ... the old nickel and dime approach.

Reminds me of a guy who skimmed fractions of a cent from millions of Bank Accounts ... he was eventually caught and they seized much of his "ill gained Wealth"

87vert
Jan 30, 2011, 01:41 PM
I am in Western PA, I get charged 7% which is what I should be paying in sales tax.

Pennsylvania imposes a 6% state sales tax on taxable goods and services (exemptions from sales tax include food, clothing, drugs, textbooks, resale items and residential heating fuels). A local sales tax of 1% is also collected on the sales of taxable goods and services in Philadelphia and Allegheny counties (for a total of 7% sales tax).

dapetrun
Jan 30, 2011, 07:22 PM
I am in Western PA, I get charged 7% which is what I should be paying in sales tax.

Allegheny County is 7%
Beaver County (and many others) is 6%

Try the zip code calculator for 15010

Either way, I could/couldn't care less about the dime, but refusing to fix what is wrong is just wrong.

RCGMac
Jan 30, 2011, 08:17 PM
Netflix is charging the me the right tax. Sorry you are having difficulties, but I am not sure it is the massive conspiracy you have built it up to be.

EvilC5
Jan 31, 2011, 06:39 AM
the question should be if Netflix is actually paying that sales tax they collect to the correct places?

I have seen several internet vendors collect sales tax, but then do nothing with it because technically they dont have to collect sales tax for internet purchases.

mchalebk
Jan 31, 2011, 08:10 AM
Back to the topic at hand. I haven't run into this problem myself. However, in the last year or two, I have had occasion to call NetFlix customer service and have gotten good results. Has the OP tried calling them since signing up again? If not, might be worth giving it a shot.

paulrbeers
Jan 31, 2011, 09:05 AM
Has anyone else noticed the amount of threads created with titles that are clearly over-reactions? Seriously.... I get that Netflix has your Taxation rate incorrect, but I really doubt they are doing it on purpose. Further, where is your main DVD distribution center located?

omyard
Jan 31, 2011, 09:14 AM
Sounds like you have the grounds for a class action lawsuit. Now go forth and live the American dream!

Gaelic2
Jan 31, 2011, 10:07 AM
I tried NetFlix for a couple of months and finally dropped the service. They have a lot of old movies that have already been on late night TV as well as a load of movies I wouldn't go see if they were free. I guess I'll bite the bullet and rent from Apple or from Dish Network and get what I want.
As for billing, they were correct and I had no trouble dropping the service.

From A Buick 8
Jan 31, 2011, 03:15 PM
Reminds me of a guy who skimmed fractions of a cent from millions of Bank Accounts ... he was eventually caught and they seized much of his "ill gained Wealth"

That was part of the plot for Superman 3, which you can get on netflix.

184550
Jan 31, 2011, 03:28 PM
FWIW, I'm being charged correctly (I think).

28025
$9.99 one DVD out + Unlimited streaming plan
$10.76 total.

Cheffy Dave
Jan 31, 2011, 06:06 PM
Just checked my billing history,it is correct at 6% for my zip code:cool:

Phantom Gremlin
Feb 2, 2011, 01:29 AM
Sounds like you have the grounds for a class action lawsuit. Now go forth and live the American dream!

I detect more than a hint of sarcasm.

If it weren't for the plethora of class action lawsuits, lawyers would be a lot poorer. In addition, the egregious behavior of the megacorps would be much much worse. A Faustian bargain we have made with the shysters; fortunately it does occasionally benefit the little people.