Netflix will amend a total of six unfair terms and conditions for South Korean subscribers upon the order of the country’s antitrust regulator, a move that has made Korea the first country where the global video streaming giant has ever revised its subscription terms.

The Fair Trade Commission (FTC) said on Wednesday that Netflix will apply new subscription terms and conditions as of Jan. 20. It had ordered the over-the-count international streaming service has changed a total six terms citing unfair practices.

The antitrust watchdog said Netflix’s changing of its terms subscription plans and prices without subscriber consent is deemed as unfair, and it can violate users’ rights. Previously, Netflix could notify subscribers of fee changes and apply the alterations to billing without prior subscriber consent, according to the FTC.

With the new terms, Netflix must ask for permission from subscribers when they make changes in subscription payment conditions and provide subscribers with an option of cancellation in case of disagreement.

Netflix will also amend a clause that shifts the responsibility to subscribers for matters resulting from its inadequate account management. The current terms state Netflix members are responsible for all activities that occur through their account.

As a result, customers cannot hold Netflix responsible for personal information leakage in account hacking which occurs due to the company’s negligence. The new terms will state that customers are responsible only for their matters of negligence.

A provision forcing customers to waive their right to claim all special, indirect and secondary remedies for Netflix will also be amended.

By Moon Jae-yong, Lee Yong-ik and Minu Kim

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