Amazon Prime in Germany Under Scrutiny by Regional Courts
The subscription service Amazon Prime has encountered legal issues in Germany. The Regional Court in Düsseldorf ruled that Amazon’s unilateral increase of subscription fees related to its “premium” service violates German civil law regulations.
Background of the Case
In 2022, Amazon introduced into the terms of the German version of Prime a clause allowing subscription price changes. Thanks to this clause, the company could increase fees without individual negotiations with customers. From June 2022, the annual fee rose from EUR 69 to EUR 89.50, and the monthly fee from EUR 7.99 to EUR 8.99.
The purpose of the clause was to provide Amazon with legal certainty regarding subscription price increases, but the courts found that it does not offer full protection against legal consequences in Germany.
Court Rulings
The case was brought by a consumer protection organization from North Rhine-Westphalia. It argued that unilateral subscription increases are incompatible with German contract law.
The Regional Court in Düsseldorf sided with consumers, declaring Amazon’s actions illegal. The Higher Regional Court in Düsseldorf confirmed this position, emphasizing that companies cannot raise prices within existing contracts without clear consent from customers.
Next Steps
The ruling of the Higher Regional Court is not automatically binding for Amazon.
The company may appeal to the Federal Court of Justice of Germany. It is not yet known whether Amazon will choose to do so.
Significance of the Ruling
The judgment highlights the importance of the principle of good faith in contracts. It was found that introducing and applying the price-change clause in this manner was contrary to the law.
Consumers may therefore seek reimbursement of overpaid fees. The Regional Consumer Center also plans a class action to enable recovery of funds and possible penalties.
Implications for the Industry
The case demonstrates that regulations apply equally to all companies, regardless of their size or importance. The ruling may become a precedent for the entire subscription industry and encourage other consumer protection organizations to scrutinize similar market practices.