He’s not the hero Netflix users deserve, but the one they need right now.
Earlier this year, Netflix pulled a fast one by increasing its longtime users’ subscription fee of $2 per month — even though the older users were supposed to be grandfathered in to keep the same $7.99 fee they started off with.
But one customer isn’t letting the streaming service get away that easily, and is suing the company for increasing its prices!
According to a class action lawsuit filed in California federal court on Wednesday, Netflix has “broken its contract” by increasing fees despite guaranteeing subscription prices would not increase. The complaint states:
“For a period of time, Netflix solicited persons to subscribe to Netflix’s streaming service by guaranteeing that Netflix would not increase monthly subscription prices as long as the subscribers maintained the subscription service continuously. Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices.”
George Keritsis says he subscribed to the service based on Netflix’s promise that the monthly subscription price would stay at $7.99 — a phone representative even ensured the customer his fee would be “grandfathered” when the price increased.
But come June of this year, Keritis was notified that his “special pricing” is ending and his new fee would be a dreaded $9.99 per month!
After calling up Netflix, the customer was basically told to suck it up.
The complaint added:
“The Netflix representative stated that he could see Plaintiff’s account was ‘grandfathered in.’ Plaintiff protested that the price increase was inconsistent with the lifetime price guarantee. The Netflix representative stated that Netflix would raise prices for all grandfathered accounts, not just Plaintiff’s account.”
So, what’s a binge watcher to do — fork over the extra $2 a month? Not a chance!
Keritsis is suing the streaming giant for breach of contract, and is seeking class certification for “all persons who entered into an agreement with Netflix for a streaming plan at a subscription price that Netflix promised not to increase for as long as they continuously maintained their subscriptions.” — which is a whopping 22 million people!
Netflix has yet to comment, but this could be quite the sticky situation. Especially since this lawsuit involves customers who have stuck with the service from the beginning!
Will you be joining the class action lawsuit against Netflix?