Consumer Protection Agency Takes Action Against Disney+ Over Subscription Access

The Consumer Protection Agency of North Rhine-Westphalia has issued a formal warning to Disney+, alleging that the streaming service has restricted access to subscribed content as part of its recent price increase strategy.

According to the agency, Disney+ utilized a pop-up notification visible to existing subscribers within its applications. This notification appeared shortly before the expiration of their subscription period, informing users of an impending price hike. Subscribers were then compelled to choose between accepting the new price or canceling their subscription.

The Consumer Protection Agency contends that this method was problematic since the pop-up could not be dismissed without making a selection. As a result, the agency argues that Disney+ effectively denied active subscribers access to their paid content while pressuring them into a decision.

In Germany, subscription prices cannot be unilaterally raised by service providers. Consequently, companies like Disney+ must obtain explicit consent from their customers to implement any price increases on active subscriptions. Previous attempts by other streaming services to bypass this requirement through terms and conditions have been deemed unlawful by the courts.

Typically, streaming services notify users of price changes via email. If a user does not respond, this is interpreted as a rejection, leading to the cancellation of their subscription upon its expiration. However, emails can easily be overlooked. Disney+'s use of an in-app pop-up was likely an effort to ensure that users were made aware of their situation. Nonetheless, the Consumer Protection Agency maintains that Disney+ should have allowed users the option to close the notification.

Iwona Husemann, a lawyer with the Consumer Protection Agency, stated that consumers should not face technical barriers that compel them to accept contract modifications. She emphasized that access to previously paid services should not be conditional upon agreeing to new terms.