Unilateral amendments to subscription service terms
Recently, subscription models, specifically unilateral changes to such contracts introduced by businesses without the explicit consent of consumers, have been increasingly drawing the attention of the President of the Polish Office of Competition and Consumer Protection (UOKiK).
In February this year, the President of UOKiK announced that it was launching proceedings against HBO Europe[1]. According to the authority, a consumer purchasing a subscription for a fixed period should be guaranteed the ability to use the service on a device that was compatible at the time the contract was concluded. UOKiK thus questioned the practice of unilaterally limiting the list of supported devices (e.g. older TV models) during the subscription period, which de facto forces users to purchase new equipment to continue using the service. Because of such practices, the customer loses the technical ability to use the service while remaining bound by the contract and the obligation to pay.
The problem also concerns the way in which the technical requirements and the service’s compatibility with users’ devices are communicated. The authority found that such information was only available in terms and conditions on the website, rather than on a durable medium (e.g. an e-mail confirming the conclusion of the contract). This made it difficult for consumers to later determine exactly which technical conditions applied at the time of purchase, a situation further complicated by the use of vague references to latest operating system versions, which unfairly shifted the burden of determining whether their equipment would be supported onto consumers.
The authority is also scrutinizing the rules for introducing subscription price increases. Last year, the President of UOKiK brought charges against Netflix[2], challenging provisions that allowed it to unilaterally change prices and other essential contract terms without obtaining the active consent of the user. In the authority’s view, if a platform operates in a subscription model where the fee for the next period is automatically collected from the consumer (e.g. from a payment card linked to the account), any change in price and essential contract elements must occur with the consumer’s conscious consent (opt-in). If the consumer does not accept the new conditions, the contract should not be renewed under the changed conditions. Similar charges were brought in 2023 against Amazon Digital UK and Amazon EU, which changed their practices following the President of UOKiK’s actions[3].
What does this mean for businesses?
When providing subscription services, businesses should move away from the model of automatic price increases and changes to essential contract terms in favor of always obtaining the consumer’s consent to continue the subscription in its new form. Tailor-made modification clauses may prove necessary for this purpose. Furthermore, consumers should be ensured full transparency by being provided with precise hardware requirements on a durable medium and with guarantees of the service’s compatibility with the customer’s devices (where technically feasible) throughout the paid period.
[1] https://uokik.gov.pl/en/the-service-stopped-working-but-the-subscription-remains-valid-the-president-of-uokik-brings-charges-against-hbo
[2] https://uokik.gov.pl/en/price-hikes-on-autopilot-netflix-to-raise-fees-without-users-clear-approval
[3] https://uokik.gov.pl/en/change-in-subscription-terms-only-with-your-permission