A Montrealer brought a collective action

  • Photo courtesy
    Frederic Lord, the Instigator of the collective action

    Michael Nguyen

    Wednesday, 16 August, 2017 22:59

    UPDATE
    Wednesday, 16 August, 2017 22:59

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    Enraged by the price hikes of Netflix, a Montreal wants to bring a collective action against the company that would trample according to him, the Law on the protection of the consumer.

    “The second increase in the past week has been the straw that broke the camel’s back… The law is clear, a trader can not unilaterally modify a contract,” explains Frédéric Lord, who acts as a representative of all subscribers in Quebec.

    With the help of the law firm Kugler Kandestin, Mr. Lord has thus filed last week a request for collective action against the company, which distributes to its subscribers the television series such as House of Cards and Orange is the New Black.

    Illegality

    According to estimates by the office of the lawyer that there are around 1.45 million users of Netflix in Quebec. It requires 10 $ of compensation per user, as well as punitive damages of $ 7.5 million, to be divided between each member.

    The first increase in the subscription price of Netflix goes up to 2014. At the time, Mr. Lord had a monthly subscription at $ 8.99, which is past at $9.99.

    However, the Law on the protection of the consumer requires a trader to indicate the current rate at the time of the rate change. The customer may refuse the change or cancel the contract without cost.

    By failing to include this information, Netflix will find itself in an illegal, one can read in the court document filed at the courthouse of Montreal.

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    “These are basic rules that protect a minimum of consumers and we must respect them,” explains Mr Lord. This is not for the money that I have undertaken the action, but most of all by principle. “

    Taxes

    The application of collective action will be presented later to a judge, who will determine if she can go forward. Unless an amicable settlement, the proceedings could, however, stretch over several years.

    This is not the first time that Netflix has been criticized in Quebec. The company whose headquarters is in the netherlands do not pay GST and QST, thereby depriving the government of huge sums of money. Of american States, Australia and the european Union tackled the problem by changing the tax laws to collect the taxes of foreign companies.

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