Dutch consumer organisation suing Netflix over "unfair" price increases

A Dutch consumer organisation has filed a class action lawsuit against the streaming service Netflix, arguing that its regular price increases violate European regulations. It is asking current and past subscribers to join the lawsuit. 

Lawsuit describes Netflix price increases as unfair and voidable

As anyone who has been a Netflix customer for more than a few months knows, the streaming service stipulates in its terms and conditions that it can periodically adjust the price.

However, the Consumer Protection Foundation (Stichting Bescherming Consumentenbelang) argues that Netflix is not allowed to adjust its subscription prices without providing clear reasons for the changes. According to EU law, Netflix must explain clearly and understandably to new subscribers how and under what conditions it can impose price increases. 

Since Netflix allegedly failed to do this, the terms are “unfair and voidable”, the foundation writes in a press release. “All price changes are therefore invalid, and Netflix must refund the difference between your original subscription price and the price you subsequently paid.” The press release says this could amount to hundreds of euros per subscriber. 

Subscribers in the Netherlands asked to join lawsuit

The Consumer Protection Foundation is therefore launching a class action lawsuit against Netflix, and is asking current and former subscribers in the Netherlands to join. More than 1.000 people have already registered to join the claim, NL Times reports.

It has invited Netflix to meet “to reach a mutually agreed-upon solution”. If that proves unsuccessful, the foundation intends to sue the streaming service. This could result in compensation payments for anyone who has joined the lawsuit. The foundation promises that consumers will not have to pay anything if they do not win the case. 

A Netflix spokesperson responded by saying that the company values clear communication and that all price changes in the Netherlands were implemented “in accordance with the applicable legislation.” 

Netflix subscription costs up 75 percent since 2017

The Consumer Protection Foundation writes that Netflix has raised its subscription prices by up to 75 percent since 2017, without giving any clear reasons for the change. Earlier this month, it announced a 10-percent price hike for all subscriptions. A premium subscription now costs 20,99 euros per month, up from 11,99 euros in 2017. 

This is not the first time that Netflix has faced legal action over its price increases. In Germany, several judges have already ordered Netflix to repay “unfair” price increases, and in Austria Netflix agreed to compensate customers for unfair price increases as part of a collective settlement.