German consumer organization sues Disney over Disney+ price increase

A German consumer organization is suing Disney over the unilateral price increase of the Disney+ streaming service. According to the organization, Disney does not sufficiently indicate in its conditions which factors can facilitate a price change.

The Verbraucherzentrale Brandenburg, in short VZB, writes on his website that a consumer from the German city of Cottbus had lodged a complaint with the organization about the price increase of almost 30 percent for his annual subscription to Disney+. The consumer organization read the terms of the streaming service and found that it does indeed mention potential price changes at Disney+. These would only take effect from a new subscription period and the price change would also be communicated at least 30 days before the start of a new subscription period.

According to the organization, the factors that influence a price change are not communicated and this makes it difficult for the consumer to estimate possible price changes, according to the VZB. “In our opinion, this is not legal,” says Michèle Scherer, expert digital affairs at VZB. According to the German consumer watchdog, clauses about price changes in terms of use should also identify the factors that could facilitate such changes, such as increasing costs, for example. The consumer organization had sent a letter to Disney, but received no response. That is why it has now filed a complaint with the regional court in Potsdam.

The German consumer organization does not state which price increase is involved. In 2020, Disney introduced a price increase for Disney+ and early August the company did this again. Then it announced new prices to be applied in the United States from December 8. The rest of the world where Disney+ is available will probably follow later. The Disney+ Basic subscription will cost $ 7.99 per month from December 8, an American user will see 4 minutes of advertising per hour with this new subscription. Disney+ Premium will cost $10.99 per month in the US starting this fall. Previously it was $7.99. An annual subscription to Disney+ Premium costs $109.99, previously it was $79.99 per year.