NEW ORLEANS - The City of Kenner and the private lawyers it hired are at the helm of a class action lawsuit against video streaming services Netflix and Hulu that accuses the services of not paying Louisiana municipalities their dues for having Louisiana customers.
According to documents filed in the Jefferson Parish District Court on Jan. 22, defendants Netflix and Hulu violate the 2008 Consumer Choice for Television Act by not paying the plaintiff its franchisee fee, which is 5% of the video service's gross revenue within that municipality. The lawsuit is similar to others filed around the country by government officials who are paying private lawyers a percentage of whatever is recovered.
The franchisee fee covers the costs municipalities experience when a consumer uses broadband or other network connections to request a connection to the Netflix or Hulu server through their local internet provider, the suit says.
The class sues Netflix and Hulu for declaratory judgement, injunctive relief and an accounting for its violations, violation of the 2008 Consumer Choice for Television Act and unjust enrichment.
The plaintiff requests that the defendants be ordered to abide by the act and pay the appropriate fees.
The City of Kenner is represented by Bruno and Bruno LLC of New Orleans and other firms. The defendants removed the case to New Orleans federal court on March 3.