Poland’s consumer watchdog, the Office of Competition and Consumer Protection (UOKiK), said on Monday that it has charged Netflix with raising subscription fees unilaterally without obtaining explicit consent from users. The regulator noted that in August 2024 Netflix boosted some monthly prices by up to 7 zlotys ($1.92) without active approval from subscribers.
UOKiK is examining whether a company can change essential contract terms, such as pricing, without explicit consent, a question whose legality has yet to be determined. The watchdog said Netflix’s approach appeared to hinge on subscribers’ lack of reaction to signal agreement with higher prices. It argued that simply notifying customers and moving forward with the price change does not meet the legal requirements for a valid contract modification. The proceeding targets Netflix’s Dutch subsidiary, which serves the Polish market, marking the launch of an administrative case.
If the allegations are upheld, Netflix could face a fine of up to 10% of the Dutch subsidiary’s turnover for each unlawful clause, and it may be ordered to reimburse customers who were charged unjustly. UOKiK also pointed to a prior similar intervention earlier this year, which prompted Amazon to amend terms for Amazon Prime and Amazon Prime Video.
What this means for users and the market
– The case underscores a broader push in Poland and across the European Union for clearer, explicit consent when changes to pricing or other core contract terms are made in digital services.
– Subscribers should stay attentive to renewal notices and terms changes, especially when providers announce price adjustments.
– For Netflix, the outcome could influence how the company approaches price changes in Poland and potentially in other EU markets, encouraging more transparent consent mechanisms.
Commentary and outlook
– A favorable interpretation for consumers is that stronger enforcement of explicit consent rules can lead to fairer pricing and clearer terms across streaming services.
– For Netflix, the administrative path could lead to changes in how price adjustments are communicated and approved in Poland, with possible ripple effects if regulators apply similar standards elsewhere in the region.
Summary
UOKiK has initiated an administrative proceeding against Netflix over alleged unilateral price increases in Poland, arguing that explicit user consent is required for changes to essential contract terms. The case follows a comparable action against Amazon earlier this year and could result in significant fines and reimbursements if Netflix’s practices are deemed unlawful. Potentially, this development signals stronger consumer protections for digital service subscriptions in Poland and the broader EU.
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