Intelliflix

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Intelliflix was an online DVD rental service established in Florida, United States, in 2004, which ceased operations in late 2007. On August 25, 2008 their homepage showed a notice that began: "Intelliflix has discontinued business operations."

The company had utilized company-owned distribution facilities, in addition to claiming a nationwide network of independent video retailers (IVRs) to service both pay-per-rental and subscription customers. While in business, its main competitors were Netflix.com and Blockbuster.com. Intelliflix gained notoriety by being the only major DVD-rental company that offered adult movies and game rentals in the same subscription.[citation needed]

Among Intelliflix's offered features was an annual three-rentals-at-a-time plan (called a "SuperPass") for $99 per year. Customers were strongly urged to purchase the annual SuperPass, with the promise that they could cancel anytime. Its advertised prices made it the least expensive online rental plan for three rentals at a time. Its website also claimed faster shipping time than Netflix, even promising to ship new movies before old movies had been returned to their warehouse.

In 2006, Intelliflix was said to have "the best deal in DVD delivery" by WNBC, NBC's New York affiliate.[1] However, customers' reviews of the company over a three-year period averaged only one out of ten stars.[2] In addition, the company has received an "F" rating by the Southeast Florida Better Business Bureau, for ignoring or refusing to resolve over 700 customer complaints.[3]

State of Florida Lawsuit[edit]

On August 29, 2007, Florida Attorney General Bill McCollum filed suit against Intelliflix and its owner Christopher Hickey for deceptive advertising and operating without a license.[4] An investigation into the company’s practices had been launched in January 2007 by the Attorney General’s Economic Crimes Division, after it received more than 285 complaints about the company. The investigation found that consumers who attempted to cancel their subscriptions were rebuffed, that Intelliflix’s movie selection and delivery times were far worse than represented on its website, and that the company was unresponsive to complaints.

The lawsuit had asked that Intelliflix be permanently enjoined from engaging in the business of online video rental. Intelliflix ceased operations by year’s end, but its website remained active until August 2008.

The lawsuit also charged the company for failing to register a business license with the state. The company faced fines for violating Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA), fines for each year it failed to register its business, and victim restitution.

On May 18, 2009 a company named CheapFLIX began using Intellifix's customer database to contact former Intelliflix members via e-mail. These e-mails included offers for a pro rata credit on their Intelliflix account balance, as well as a one-month or eight-month credit toward a CheapFLIX account. CheapFLIX, like Intelliflix before it, rents DVDs that appeal to the "adult-only" market.[citation needed]

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