Netflix Subscribers Suing Over Increase In Monthly Fees

Netflix has decided to raise their prices and some of the company's subscribers feel that they [...]

By Hunter Miller

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Netflix has decided to raise their prices and some of the company's subscribers feel that they have a class action lawsuit worth filing against the world's largest streaming service. Netflix recently announced that the monthly subscription fees would go up to $9.99, and the company stands to lose around half a million customers because of the upcoming price hike.

The upcoming lawsuit estimates that around 22 million people could be part could be part of the class action against the streaming company, according to The Hollywood Reporter. The proposed lawsuit was filed in federal court on Wednesday in California. "For a period of time, Netflix solicited persons to subscribe to Netflix's streaming service by guaranteeing that Netflix would not increase monthly subscription prices as long as the subscribers maintained the subscription service continuously," states the filed complaint. "Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices."

One man, named George Keritsis, called Netflix to confirm that he would be able to maintain a $7.99 monthly subscription. Keritsis claims that he subscribed based on the conversation he had with a Netflix telephone representative that assured Keritsis that the fee would be "grandfathered."

Keritsis' rate subsequently increased to $8.68 per month in October of 2012. Then, in June, Keritsis received an email informing him that his new price would be bumped up to $9.99 per month, and that his "special pricing" would be ending. Keritsis called the number listed on the email for the subscribers who had questions regarding the situation.

"The Netflix representative stated that he could see Plaintiff's account was 'grandfathered in,'" states the complaint. "Plaintiff protested that the price increase was inconsistent with the lifetime price guarantee. The Netflix representative stated that Netflix would raise prices for all grandfathered accounts, not just Plaintiff's account."

Keritsis along with millions of others could be part of the upcoming suit claiming Netflix breached contract. They will be seeking class certification for "all persons who entered into an agreement with Netflix for a streaming plan at a subscription price that Netflix promised not to increase for as long as they continuously maintained their subscriptions."

Netflix has not yet commented in response to the class action lawsuit.

Do you think Keritsis has a right to file a lawsuit against Netflix?

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