Netflix has to accept a clear defeat in the court. According to the judges of the Berlin Regional Court, a clause to adjust the subscription price in the terms of use is inadmissible. Here’s what that means for customers.
The Federation of German Consumer Organizations ( has won a victory against Netflix in the Berlin Regional Court. The subject of the negotiations was a clause in the terms of use that gave the streaming service the right to change its subscription prices. As the federation reports , this is not formulated clearly enough.
The clause is about Netflix being able to adjust the prices in line with cost developments at its own discretion. Examples of relevant factors are production and license costs, marketing, personnel and IT systems.
Price change clause at Netflix: several points inadmissible
Netflix faces a clear defeat in court.
In the opinion of the federation, however, there is a lack of transparency here. It is not clear according to which criteria price adjustments are made. However, this is necessary so that users can understand any changes.
The Berlin Regional Court now agreed with this view. Since Netflix is an international group, it is emphasized that only factors that influence the costs of provision in Germany may be taken into account. In addition, the court explains that Netflix is obliged to reduce prices if costs fall. That explanation is missing from the clause.
Netflix has now appealed the verdict to the Berlin Court of Appeal.
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