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German Court Rules Netflix Price Hikes Unlawful, Mandates Refunds

The Cologne Regional Court invalidated Netflix's fee increases from 2017 to 2022, allowing millions of German subscribers to claim refunds for overpaid charges.

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Mann und Frau sitzen vor einem TV und gucken Netflix

Overview

  • The Cologne Regional Court declared Netflix's unilateral price increases from 2017 to 2022 unlawful due to inadequate consumer consent mechanisms.
  • Netflix must refund approximately €200 to the plaintiff for overpaid fees since 2019, with older claims deemed expired under the three-year statute of limitations.
  • The court found Netflix's pop-up consent process insufficient to establish a binding contractual amendment under German law.
  • Millions of Netflix subscribers in Germany could now pursue refunds for similar overcharges, potentially reshaping industry practices for digital service agreements.
  • Netflix criticized the ruling as inconsistent with other court decisions, while consumer advocates hailed it as a significant step toward stronger subscriber rights.