Poland’s consumer watchdog, the Office of Competition and Consumer Protection (UOKIK), has accused popular streaming platform Netflix of increasing subscription fees without the explicit consent of users, the regulatory agency said on Monday, August 25, Reuters reported.
UOKIK said that in August last year, American company Netflix had voluntarily increased some monthly fees by up to 7 zlotys ($1.92) without actively seeking approval from customers.
Under Polish consumer protection law, companies are prohibited from unilaterally changing important contract terms, such as pricing, without obtaining explicit approval from customers, which is considered a violation of consumer rights.
“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, according to Reuters.
The company’s press office pledged to work closely with UOKiK on this issue, adding, “ensuring the most favorable solution for Netflix viewers in Poland.”
The watchdog said Netflix’s practice is based on the assumption that customers have accepted price increases based on a lack of response.
According to Reuters, UOKiK President Tomasz Chrostny said in a statement that the price of services, like any provision, should not be changed unilaterally without the user’s clear and informed consent.
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If the watchdog’s allegations are confirmed, the streaming company could face fines of up to 10% of its turnover for each unlawful clause. On the other hand, Netflix could be required to refund customers for fees it unfairly charged.
UOKIK said it intervened in a similar case in Poland earlier this year, forcing American multinational technology company Amazon to amend its terms and conditions for Amazon Prime and Amazon Prime Video for its customers.