Netflix has implemented additional fees for users who share passwords with people who don’t live in the same household.
This move aims to address the challenge of sharing passwords, which impact the company’s business model. Netflix has stated on other occasions that they are losing out on sharing this.
The surcharge aims to ensure a fairer distribution of content licensing and operating costs, in addition to encouraging users to buy their own subscriptions.
This practice is not new, as other countries, such as Canada, New Zealand, Portugal and Spain, have implemented these surcharges since the beginning of this year. In the United States, exchange rate integration started recently, on 23/5, as well as in Brazil.
Prokon in consumer protection
Shortly after the announcement of this action, Procon de São Paulo asked Netflix for clarification. This action aims to obtain different information about what criteria will be used and how consumers will be notified.
The aim is to ensure that the action complies with the complete statutory regulations, as well as protect consumer rights.
Procon de São Paulo took the initiative to seek clarification from Netflix regarding additional fees for sharing passwords after receiving several complaints from consumers who were dissatisfied with this new policy.
Procon’s actions aim to ensure the protection of user rights and seek transparency of the information provided by these streaming companies.
The consumer protection agency asked Netflix for clear information about what the company communicated to its customers regarding additional fees for sharing passwords.
Additionally, the agency wants to understand whether Netflix adopts the new billing attributes and how this access system will work.
The aim is to analyze whether the action complies with the rules protected by the Consumer Protection Code. In short, Procon seeks clarified communications, billing certificates and other relevant information to check for possible violations of consumer rights.
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