Disney Being Sued Over Streaming Network Price Increase
If you’ve been following along with MickeyBlog, then you may have heard the news that Disney has opted to increase the monthly fee for a subscription to the Disney+ streaming network. Its a decision that didn’t surprise many subscribers but Disney may see its day in court over the matter.
Image: Disney Plus
According to a piece in Forbes, The German Verbraucherzentrale Brandenburg (VZB) Consumer Advocacy Group has started legal proceedings against Disney. Disney is being sued over the grounds that the provision in the Disney+ contract for increasing prices unilaterally without restrictions and at the customer’s expense is in violation of legal regulations.
You can check out the official press release from the advocacy group here.
Photo: Chesnot/Getty Images
The VZB said that they previously contacted the Walt Disney Company and warned about potential legal issues surrounding the Disney+ price hike but did not receive a response. As a next step, the VZB issued a cease and desist order with Potsdam District Court.
The advocacy group said that they felt it necessary to act after receiving a message on its online complaints portal from a subscriber upset that they cost of their subscription was going up 30% a month. Upon further investigation, the VZB said it found that the Disney+ conditions of subscription reserve the right to change prices from the beginning of a new subscription period with 30 days notice given to the subscriber. But, the fine print doesn’t specify what factors could result in a price change. As a result the VZB argues that consumers have no idea what price increases to expect which is unethical.
Photo Credit: AP Photo/Richard Drew, File
As Forbes tells us, VZB argues that pricing clauses must outline cost elements that could potentially lead to a price increase. Companies can’t merely increase prices to increase profits!
At the time of going to print, Disney has yet to comment on the lawsuit. This is a story that we will continue to follow closely. Readers are encouraged to keep checking back with us for further Disney-related news and updates. We’ll be coming to you LIVE! from the theme parks each and every week.
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Source: Forbes
