Netflix continues to hike its prices, but critics argue these increases violate EU rules and were implemented unlawfully. As a result, Dutch customers may be eligible for compensation by joining a collective action initiated by a consumer organization.
Consumer Foundation Takes Action #
According to the Stichting Bescherming Consumentenbelang (Foundation for the Protection of Consumer Interests), Netflix has increased prices for existing subscriptions in the Netherlands by approximately 75% since 2017. While price increases are permitted, they must be conducted with full transparency.
The consumer organization claims Netflix has failed to do this, rendering the price hikes invalid under EU regulations.
Foundation’s Statement #
In a statement on its website, the foundation’s chair, Flore Kraaijeveld, argues that Netflix included a clause in its user terms allowing the company to adjust prices at any time. Such a clause is not permissible under EU law.
Under these rules, Netflix is obligated to clearly explain at the time of sign-up how and why price increases may be imposed. The foundation alleges Netflix did not do this, making the terms unfair, legally void, and effectively non-existent.
Therefore, the foundation argues these mid-contract price increases were invalid, and Netflix should refund customers the difference between their original subscription price and what they pay today.
How to Join the Claim #
Interested individuals can join the action by clicking the “Deelnemen” (Participate) button on the foundation’s website. Similar actions in Germany and Austria have been successful, forcing Netflix to pay out compensation.
Participation is on a “no cure, no pay” basis, meaning there are no costs to join, and participants only receive a payout if the action is successful. So far, around 2,000 people have already signed up.
The Netherlands Authority for Consumers and Markets (ACM) has confirmed that companies must meet several requirements to implement a price change, such as providing a clear explanation and a valid reason. However, the ACM has not yet investigated this specific case.
Why the Foundation is Acting #
The Stichting Bescherming Consumentenbelang lists several reasons for its action:
- To tackle misconduct by organizations.
- To prevent future issues and make companies more aware of their responsibilities.
- To obtain compensation for consumers who have been disadvantaged.
Netflix’s Response #
A Netflix spokesperson stated that the company has implemented all price changes in the Netherlands in accordance with applicable legislation.