Netflix accused of illegal fee hike in Poland
The Polish regulator, the Office for Competition and Consumer Protection (UOKiK), accused Netflix of increasing subscription fees without obtaining direct consent from users.
The Polish regulator, the Office for Competition and Consumer Protection (UOKiK), accused Netflix of increasing subscription fees without obtaining direct consent from users.
Today, UOKiK stated that in August 2024, Netflix unilaterally increased some monthly tariffs by up to PLN 7 without receiving active approval from subscribers, Reuters writes .
According to Polish consumer protection law, companies cannot unilaterally change essential terms of a contract, such as pricing, without obtaining explicit consent from subscribers.
“Convenience and transparent communication with consumers are extremely important to us, and acting in accordance with all applicable laws is our top priority. We will work closely with UOKiK to clarify this issue, providing the most beneficial solution for Netflix viewers in Poland,” the Netflix press service said.
UOKiK stated that Netflix's practice allegedly relied on the lack of reaction from subscribers that would signal their agreement to higher prices. Simply notifying customers and insisting on further action does not meet the legal requirements for valid changes to the contract.
The regulator is bringing charges against the company, the statement said, indicating the start of administrative proceedings.
The regulator brings charges against the company, which means the start of administrative proceedings.
“The price of a service, like any provision, should not be changed unilaterally without the clear and informed consent of the user,” said UOKiK President Tomasz Chrostny.
If the charges are proven, Netflix could face fines of up to 10% of its annual revenue for each violation, and could also be ordered to refund customers who were wrongly charged.
UOKiK also said it intervened in a similar case earlier this year, prompting Amazon to change its terms for Amazon Prime and Amazon Prime Video.
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