Regulation of the terms of use of video on demand services in Argentina: the cases of Netflix and Max
Abstract
The article analyses the intervention of the Dirección Provincial de Defensa de los Derechos de las y los Consumidores y Usuarios of the Province of Buenos Aires against the video-on-demand streaming companies Netflix and Max for including abusive clauses in their terms of use. Using a case study approach, the paper reflects on the weaknesses of corporate self-regulation and the importance of state regulation. This official body, part of a subnational administration in Argentina, intervened ex officio to review adhesion contracts and identified several clauses that violated consumer rights. The companies limited their liability for service failures, refused to offer guarantees, denied any form of refund, restricted the user's options to unsubscribe, reserved the right to cancel contracts without cause, retained customer data after the commercial relationship had ended, and, when conflict was inevitable, forced customers to waive any form of collective action, imposed arbitration agreements, and established jurisdiction in foreign courts to resolve disputes. As a result, the provincial regulatory authority charged the two multinational companies between August and October 2022, achieving modifications to the observed clauses to bring them into compliance with national legislation, applicable throughout the country.
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References
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