In recent years, subscription contracts have become an integral part of our everyday lives. This phenomenon has grown in popularity, encompassing not only streaming services but also insurance and electricity supply. With the growing number of subscriptions, the Office of Competition and Consumer Protection (UOKiK) decided to take a closer look at the practices of the largest players on the market, with the aim of protecting consumers against unilateral price increases.
Amazon was the first to feel UOKiK's intensified actions
As a first step, UOKiK pursued its goal against the e-commerce giant Amazon. Amazon Prime and Amazon Prime Video services came under the scrutiny of the authority, which acted effectively on behalf of consumers, preventing uncontrolled price increases without the customer's consent. This success was only the beginning of actions aimed at regulating pricing practices in the subscription market.
Currently, other powerful entities have found themselves in UOKiK's crosshairs, such as YouTube Premium, Netflix, HBO Max, Disney+, as well as platforms related to electronic entertainment, such as Apple, Microsoft (GamePass) and Sony (PlayStation Plus). The authority, under the leadership of its president Tomasz Chrósny, is focusing on analysing the terms and conditions of subscription services, with particular emphasis on provisions concerning unilateral price changes.
An end to silent consent to price increases?
UOKiK monitors streaming subscription prices
Statistics cited by UOKiK show that in 2021 the average consumer used 5.7 subscriptions, a significant increase compared with 3.9 subscriptions in 2020. This phenomenon covers not only streaming platforms but also other services, such as insurance or electricity supply. Consequently, UOKiK deemed it essential that consumers should be able to make informed decisions about renewing contracts on changed terms, especially when it comes to price increases.
One of the key points on which the authority is focusing is the issue of "silent consent". The president of UOKiK emphasises that merely informing the customer about a price change is not enough. The consumer should have the opportunity to accept the new terms, deciding whether they want to continue the subscription after a possible price increase.
The conclusions drawn from UOKiK's actions are intended to create a balanced and transparent subscription environment in which the consumer feels protected from unfair practices. It is worth following the development of this initiative, as it may influence the shaping of pricing practices in the subscription market not only in Poland but also on a broader scale. Consumer protection is becoming increasingly important in the digital era, where subscription contracts are becoming a key element of our everyday lives.
