CF motion protects Netflix in Switzerland from price hikes (cross-border guide)

Context

In a nutshell

• CF approves Farinelli motion to regulate streaming and Netflix increases
• Authorised price increases only with transparent and objective criteria
• Consumers will have the right of free withdrawal in the event of substantial increases
• Italy and Germany have already adopted similar measures

Key facts

• What: Motion to protect consumers from unilateral increases in streaming platforms
• When: Approval recommended by the Federal Council
• Where: Switzerland, Federal Parliament
• Who: National Councillor Alex Farinelli (PLR/TI), Federal Council
• Requests: Transparent criteria, right of withdrawal, clear information to users

Motion Chronicle

The Federal Council approves the motion by Ticino National Councillor Alex Farinelli that aims to regulate rate increases for streaming platforms such as Netflix. The federal executive recommends that Parliament support this initiative to protect Swiss consumers from unilateral price increases.

In recent years, subscription digital service providers have made repeated price increases using very permissive terms and conditions that give them ample leeway to act unilaterally. This approach contradicts the fundamental principle that a market economy works only if the contractual rules are predictable, understandable and applied in good faith.

# Motion Requests

The motion

Operational details

The concrete implications for consumers

The motion represents a significant change in the relationship between streaming service providers and users. Today, many consumers discover price increases randomly, noting that their credit card is charged a higher amount. Often, the contractual conditions that allow such increases are hidden in long and complex documents, difficult for the average user to understand.

With the approval of the motion, the situation would change radically. Suppliers would be obliged to specify in the contract itself the exact criteria on which any future price increases will be based. A generic clause is no longer enough: the criteria must be objective and transparent, established before the customer subscribes.

The precedent of Italy and Germany

Italy and Germany have already shown that this regulation is possible. Both countries have taken specific measures to limit arbitrary increases in the prices of streaming platforms. Their experience shows that well-constructed regulation protects consumers without paralyzing the market.

In this context, Switzerland with this motion aligns itself with the most advanced consumer protection standards in Europe. While other European countries have already moved, Swiss federal action comes as a logical response to a growing problem affecting thousands of Swiss subscribers.

Right to

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Key points

What Happens Now: Next Steps

The motion has been approved by the Federal Council, which recommends Parliament support it. This means the proposal will enter the ordinary federal legislative process. Parliament (National Council and Council of States) will have to debate and vote on it. If the motion passes parliamentary scrutiny, the next step will be the development of concrete legislation. This could take the form of a revision to the Code of Obligations (CO), which regulates contracts in Switzerland, or a new consumer protection law that specifies rules for digital services.

What Rights You Already Have Today

Even before the motion becomes law, Swiss consumers already have rights. General terms and conditions that violate the principle of good faith are already considered abusive under the Swiss Code of Obligations. If a provider includes clauses that allow completely arbitrary and unjustified price increases, these could be challenged legally. However, the motion would make these rights more explicit and easier to enforce.

How to Protect Yourself Today

If you receive a price increase notification from a streaming service: carefully read the email to identify the stated reasons; check your original contract to see if those reasons were already listed as possible criteria for price increases; if the increase is not justified in the contract, contact customer service and request a written explanation; if you do not receive satisfactory responses, consider contacting local consumer associations or federal resources on economic rights.

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