Gamefly Action vs. US Postal Service
Posted by Dan on October 17, 2009Back in April, Gamefly filed a complaint against the US Postal Service, claiming that Netflix and Blockbuster’s DVD-by-mail services are receiving preferential handling of discs in transit. Gamefly alleged that their discs are being stolen, and that Netflix and Blockbuster are getting manual processing to prevent breakage. According to Gamefly, the USPS breaks 1-2% of the nearly 600,000 games shipped each month, which accounts for up to $295,000 per month in loss. Note that as best we understand, this is not a formal lawsuit, but rather an administrative complaint with the Postal Regulatory Commission.
In their latest filing, Gamefly points out that Netflix in particular has benefited from unauthorized “Netflix only” slots in the post offices– slots that the USPS claims that they don’t know exist, but if they did would be against policy. Something tells me that this case is going to likely progress beyond the administrative stage, but we’ll of course keep you updated as new developments are announced.
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