(Corrects paragraph 3 to clarify that Poland’s consumer watchdog has questioned whether it is legal to raise prices without consumer consent. The legality of such practices has yet to be determined. Clarifies action relates to Netflix’s Dutch subsidiary in paragraphs 7-9.)
(Reuters) -Poland’s consumer watchdog the Office of Competition and Consumer Protection (UOKiK) has accused Netflix 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.
“Comfort and transparent communication with consumers are crucial for us, and acting in accordance with all applicable laws is our top priority,” Netflix’s press office said.
“We will work closely with UOKiK to clarify this matter, ensuring the most favourable solution for Netflix viewers in Poland,” it added.
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.
“The price of the service, like any provision, should not be changed unilaterally, without the explicit and informed consent of the user,” UOKiK President Tomasz Chrostny said in the statement.
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.
($1 = 3.6410 zlotys)
(Reporting by Marta Maciag, additional reporting by Julia Kotowska; Editing by Jan Harvey and Matt Scuffham)
