On May 16, 2022 Apple has declared an update regarding subscription notifications, according to the update developers will be able to increase the price of the subscriptions without the users’ approval. Prior to the update, users would receive an email alerting them on price increases in the subscription services they use. Thereafter, it was up to the user whether to accept or reject the price increase. Subscribers who didn’t opt in to the new price will not have their subscription renewed at the next billing period. Today, Apple has allowed to developers, in certain cases (subject to the below requirements) to charge the increased subscription fees without users having to agree to it.
Prior to changing the Subscription fees without the user consent, the developer must ensure that the following conditions apply:
- The price increase doesn’t occur more than once per year;
- There is no price increase over US$5 and 50% of subscription price (monthly based), or US$50 and 50% of annual subscription price;
- This increase is permissible by local law.
Please note that a price increase that exceeds the limits above must be opted in before it takes effect. If a subscriber does not opt in to the new price, the subscription will not renew at the next billing period, and your users will have to resubscribe within the app, from Settings on iPhone and iPad, or in the App Store on Mac.
A number of local laws prohibit the above price increase, which impacts the implementation of this update. For an accurate implementation of this update, please do not hesitate to contact us with any questions or for further information – we would be happy to discuss.
This document is intended to provide only a general background regarding this matter. This document should not be regarded as setting out binding legal advice but rather as a practical overview that is based on our understanding. APM & Co. is not licensed to practice law outside of Israel.
APM Technology and Regulation Team.
