Price increases at Netflix and Spotify ineffective?
A blow for streaming providers Spotify and Netflix: in the past, they have used price adjustment clauses that did not require customer consent. In two appeal rulings against Spotify and Netflix, the Berlin Court of Appeal has now declared the clauses used to be invalid. This follows lawsuits brought by the German Federation of Consumer Organizations (vzbv) against Spotify and Netflix before the Berlin Regional Court. However, the rulings have been interpreted differently.
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Jana Brockfeld, a consultant in the vzbv's law enforcement team: "The Berlin Court of Appeal has made a landmark decision in the interests of consumers. According to the court, the two providers sued may not unilaterally adjust their prices without the customers' consent. The Court of Appeal stated that Netlix and Spotify could easily obtain the consent of their users to a price increase. The ruling could basically mean the end of future unilateral price increases by streaming services in Germany."
A Netflix spokesperson emphasized: "Price increases in Germany were not based on this clause, but on the consent of our members."
The two rulings against Spotify and Netflix are not yet legally binding. Appeals are possible - and likely.
Because a lot of money is at stake for Netflix. According to Stiftung Warentest, all customers who started a Netflix premium subscription by the end of 2016 have now paid up to 426 euros just for price increases.
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The experts have provided a sample letter with detailed instructions for refund claims from Netflix customers. In the event of a dispute, the provider must prove that customers have consented in each case, according to Stiftung Warentest.
- Despite the court rulings, Netflix and Spotify may still appeal, potentially delaying the end of unilateral price increases for streaming services in Germany.
- The Berlin Court of Appeal's verdict has significant implications for Digital platforms like Netflix and Spotify, as they now need consumer consent for any price adjustments.
- Seo-optimization strategies could help banks and other businesses navigate the impact of this ruling, as they may need to reevaluate their pricing structures to ensure compliance with new regulations.
- Stiftung Warentest, the German consumer organization, has offered guidance for Netflix customers looking to seek refunds for excess fees paid due to unwarranted price increases.
- The vzbv, the German Federation of Consumer Organizations, has been instrumental in challenging pricing practices by Digital giants like Netflix and Spotify, advocating for fairer and more transparent fee structures for users.
