New conditions point to higher prices

Amazon recently made price adjustments. Amazon Music Unlimited is getting more expensive and Amazon Kids+ is also getting more expensive in some cases. Will you follow Amazon Prime now? The last increase was 5 years ago. In Germany the previous €49 a year became €69 a year in 2017 – if you want to pay monthly in Germany you get €7.99, but you get Prime Video, free parcel shipping, unlimited photo storage and some access to music and book content Video content and more.

Today, after that, customers were informed of the new conditions. Among other things, Amazon wrote: “We have updated the Amazon Prime Participation Terms (the “Terms”) to provide more details about how and when to make changes to these Terms, our Prime Service, or the Prime Membership Terms.

Summary of changes:

Section 5.1 contains additional information about the terms under which we may change these Terms or the Prime Service.

Clause 5.2 was newly introduced and now describes the terms under which we can adjust membership fees for a Prime Membership.

Section 5.3 provides more detailed information about when and how changes to the Terms, Prime Service or Membership Fees can be made and will be effective. Section 5.3 also informs you of your rights in the event of such a change.

Specifically, Amazon sets the rules for how your prices will change in the future. This must not only happen arbitrarily, but must be precisely defined. Netflix phrased the whole thing very loosely in terms, but consumer advocates then had success against the price-adjustment clause. Specifically, the point was that unilateral price changes to existing contracts are only allowed if they follow fair and transparent rules. This was not the case with Netflix because the rules for price adjustments were too vague, giving Netflix room for complete arbitrariness.

Amazon does not want to fall into this trap. The updated terms are effective July 11, 2022 and will apply to your main membership from that date. A comparison of the old and new Prime terms is provided here. Among other things, you can read this:

We reserve the right to adjust membership fees at our reasonable discretion and based on objective and factually justified criteria. If you live in Germany or German law applies, Section 315 BGB remains unaffected. An increase in membership fees may be considered and a reduction in membership fees (collectively: “Membership Fee Change”) should be made in order to pass on cost increases and/or cost savings to us, which are based on external circumstances beyond our control and which are based on the specific effect on the cost of the Prime service in your country, (…).

No change to membership fees will be made except to the extent that our costs, taxes and/or fees are generally reduced or increased. Therefore, we will pass the cost increases on to you only if they are not offset by other cost reductions. We will not make any changes to membership fees that affect the contractual balance between Prime and the membership fees you pay for it.

Amazon’s legal department has already reassured itself that the texts must match the price increase for reasons. And maybe you will at some point. Then, customers are notified and can cancel. You will be notified 30 days prior to the increase.

This article contains affiliate links, so we mark them as an advertisement. Clicking on it will take you directly to the provider. If you decide to make a purchase there, we’ll get a small commission. Nothing changes in the price for you. thanks for your support!

Leave a Comment