Netflix Entretenimento Brasil LTDA was administratively fined R$11 million for abusive clauses in its service provision contract and privacy terms. The fine was applied by Procon-MG, an agency of the Public Ministry of Minas Gerais (MPMG).
According to the agency, the irregularities included: misleading advertising, lack of adequate information and demanding excessive advantage from the consumer.
The administrative decision cites as illegal the clause in the contract that exempts Netflix from liability towards the consumer, contrary to the Consumer Protection Code, which establishes the duty of suppliers and service providers to provide compensation in the event of consumer infractions.
Furthermore, the decision also cites abusive contractual terms relating to privacy, which provide for the unlimited disclosure of consumer data without their consent.
According to Procon-MG, a hearing had already been held with the company in 2023 to discuss contractual clauses and privacy terms. As a way to resolve the case, a Conduct Adjustment Term (TAC) was proposed, but Netflix did not accept the agreement.
In May 2023, according to the administrative decision, Netflix announced to subscribers that it would charge a fee for each additional point, claiming that its services are for personal and non-transferable use, intended only for the subscriber and the people who reside with him/her, and that payment for each additional point is due, outside the main residence.
However, according to the administrative decision, a person can have multiple residences, and their domicile can be considered in any of them, under the terms of the Civil Code.
According to the Public Prosecutor Fernando Abreu, from MPMG, “if a music streaming service, for example, used the same model adopted by Netflix, you wouldn’t even be able to listen to music while driving. Therefore, the new billing system used contradicts its own advertising, which advocates: ‘Watch wherever you want’”.
A CNN contacted Netflix and is awaiting a response.
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
