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Cities Can’t Get Fees From Netflix and Hulu: Court Finds No Basis

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Cities Can’t Get Fees From Netflix and Hulu: Court Finds No Basis | New Jersey Law Journal

















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https://www.law.com/njlawjournal/2024/02/29/cities-cant-get-fees-from-netflix-and-hulu-court-finds-no-basis/

Netflix headquarters in Los Gatos, California. Photo: Jason Doiy/ALM

NEWS

“To find a right of action for the municipalities would mean the (Board of Public Utilities) would no longer hold all enforcement authority. Because this would change the plain meaning of the (Cable Television Act), we find no constitutional basis for finding a private right of action for municipalities,” Judge Jane Roth wrote for the court.

February 29, 2024 at 04:31 PM

4 minute read

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The U.S. Court of Appeals for the Third Circuit has shut down efforts by New Jersey towns to collect cable television franchise fees from video streaming services Netflix and Hulu.

Local officials in Irvington and Longport brought a putative class action on behalf of other municipalities seeking to enforce a provision of the New Jersey Cable Television Act that requires cable television entities to pay franchise fees to municipalities.

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