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Netflix revises terms of use in Korea following order from antitrust body

Netflix Inc. agreed to make revisions to its terms of use that were found to be unfair by South Korea's antitrust regulator, The Korea Herald reported Jan 15.

The Korea Fair Trade Commission said it ordered the streaming platform to amend some terms in its customer contracts.

The watchdog found six clauses it deemed problematic in Netflix's terms of use. These include changing subscription plans and fees without user approval, an unclear clause regarding cancellation of memberships, holding subscribers liable for accidents such as hacking, limiting users' rights to seek damages, allowing transfer of customer agreements to third parties, and a clause that identifies all other clauses as valid even in cases where a specific provision is held invalid or illegal.

Beginning Jan. 20, Netflix will have to obtain user approval before making changes to its subscription plans and fees. The existing contract states that Netflix may change its plans and prices "from time to time" and apply the changes to subsequent billings without an approval process.

The new terms are also more specific on the conditions for canceling subscriptions. Additionally, Netflix will be responsible for compensating damages when the company acknowledges its errors or faults.