Netflix's recent password-sharing experiment in South America seems to have gone confusingly wrong.
Peruvian Netflix subscribers were found to be confused about Netflix's password-sharing restrictions and the lack of clarity around the differing charges imposed on them, per Rest of World.
Rest of World is an international nonprofit journalism organization focused on covering places typically overlooked and underestimated when technology, culture, and the "human experience" collide, per the company's About Us page.
Rest Of World Report - Netflix's Inconsistencies
Rest of World report revealed that most Peruvian Netflix subscribers were not formally made aware of the streaming giant's experiment through an email or in-app notification since the experiment was announced nearly two months ago.
You may remember that Netflix launched a new feature that charges subscribers an extra $2.99 in Chile, Peru, and Costa Rica for sharing their accounts with others.
However, some users have even reported that Netflix's enforcement of its password-sharing charges differs from subscriber to subscriber, with some subscribers on shared accounts reporting that they ignored validation prompts from Netflix without repercussions of any kind on the account owner.
One subscriber even mentioned that they were never aware of the new policy and continued to share their account without issue.
Read More: Lava Lamps: How They Work and How You Can Make One at Home
Additionally, Rest of World discovered that Peruvians are confused with Netflix's vague definition of a "household," as many consider that their immediate family members are part of the household. This vagueness was later confirmed by an unnamed Netflix customer service representative in Peru, who mentioned to Rest of World that she is just as confused as Netflix's subscribers on what the definition of "household" is.
The customer service representative also added that she was instructed by her superiors that if a subscriber argues that a family member is using their account from another location, she should inquire further and tell the subscriber their family member could use their account without extra charge via a verification code.
The customer service representative is also sharing their account with friends outside her household themselves and has yet to be notified of any extra charges.
Netflix's Potential Troubles
The confusion, ambiguity, and inconsistent policy enforcement Netflix is doing in Peru have raised red flags among consumer protection agencies in Chile, Costa Rica, and Peru, with them sending representatives to meet with Netflix to discuss them.
Peru's national consumer agency recommended in a press release that Netflix set clear channels of communication about its revised policy with customers. Should it fail to do so, the agency speculated that the change would lead to "a host of consumer complaints" if Netflix does not give a clearer definition of "household."
The agency also sent a written statement to Rest of World, saying that the National Institute for the Defense of Free Competition and the Protection of Intellectual Property could consider the differing charges as a way of discriminating against subscribers arbitrarily.
Whether the policy is arbitrarily enforced or not would be determined in an investigation. However, the Insitute did not mention it is considering one at the time of the statement's submission.
Related Article: Netflix Issues Extra Charges for Password Sharing Beyond Household
