9:57am PT by Ashley Cullins
Netflix User Sues Over Rising Subscription Fees
A Netflix customer who says he was promised a $7.99 per month subscription fee for the life of his account is suing the streaming giant for increasing its prices, according to a proposed class action lawsuit filed Wednesday in California federal court.
"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 complaint. "Netflix has broken its contract with these subscribers by unilaterally raising monthly subscription prices."
George Keritsis says he saw an ad promising that Netflix would guarantee the $7.99 monthly subscription price and called the company to confirm it was true. The telephone representative ensured Keritsis the fee would be "grandfathered," and he subscribed based on that representation.
In October 2012, his rate increased to $8.68 per month. In June, Keritsis received an email from Netflix informing him that his "special pricing" is ending and his new price would be $9.99 per month. The email listed a phone number for subscribers who had questions, so Keritsis called.
"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 is suing Netflix for breach of contract and is 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." He says that's at least 22 million people.
Netflix has not yet commented in response to the lawsuit.