Warsaw [Poland], August 27: Poland's consumer watchdog the Office of Competition and Consumer Protection (UOKiK) has accused Netflix (NFLX.O), opens new tab of raising subscription fees without securing explicit user consent, the regulator said on Monday.
UOKiK said that in August 2024 Netflix had unilaterally increased some monthly fees by up to 7 zlotys ($1.92) without obtaining active approval from subscribers.
The Polish watchdog has questioned whether companies can unilaterally alter essential contract terms, such as pricing, without securing explicit consent from subscribers. The legality of such practices has yet to be determined.
The watchdog said Netflix's practice allegedly relied on a lack of subscriber response to signal they agreed with higher prices.
UOKiK argued that merely notifying customers and pressing ahead does not meet legal requirements for valid contract changes. The watchdog is raising charges against Netflix's Dutch subsidiary, which services the Polish market, indicating the start of an administrative proceeding.
If the allegations are confirmed, Netflix could face a fine of up to 10% of its Dutch subsidiary's turnover for each unlawful clause, and may be required to reimburse customers for unjustly charged fees.
UOKiK said it had intervened in a similar case earlier this year, prompting Amazon to amend its terms for Amazon Prime and Amazon Prime Video.
Source: Fijian Broadcasting Corporation
