Huge change of price and terms 2 months into buying 12 months service with an American company

_random_user_name

Hi

As topic title, I will explain :

At the beginning of September 2024 I bought a software service plan that my commercially available app uses relating to an AI product from an American company which shall remain nameless (for now). 

I had the option of $100 per month for their services or $50 per month if paying for a year in advance, so I opted for the year in advance, meaning I paid $600. Regarding the AI service they provide, this plan I am on offered a 40000 interactions quota per month (an interaction is every time my app uses their AI service) which are already covered by the amount I have paid, I am then charged $0.0025 for every interaction that happens above the 40000 inteaction quota, so for example if I use 40010 interactions in a month I am charged an additional $0.025.

They changed their pricing about 1 week ago. Now, the plan I am on has been reduced to 10000 interactions per month (my app uses far in excess of this). They have created a new plan which has a 50000 interactions quota per month that is priced at $500 per month or $4000 a year in advance, they have removed the ability to use above my alloted interaction quota and be charged $0.0025 for each interaction above my quota. 

I feel I am being pressured to join the new and far more expensive plan. Note my app still works, they haven't cut me off, yet. They have met with me by video call the other day and were obviously keen to get me on the new plan, they want to meet me with me again.

I'm hoping 1 of you knowledgeable people can tell me where I stand legally? It would be a huge inconvenience to cut ties with them because my app heavily uses their technology (I think they know this and this is why they tempt you in with cheap prices then up the price massively once you are fully integrated with them).

Can I do some sort of charge back on my bank debit card if they stop me receiving the terms I agreed to when I first signed up? What a nightmare tbh. Thanks for reading if you read all that.

born_again

I'm guessing that this is not personal use but a B2B contract. You will also be working under rights in the state they are based.

So you need to read the T/C on this & if they can change pricing without giving you a opt out.

Can't see any chargeback option on this.

_random_user_name

born_again said:

I'm guessing that this is not personal use but a B2B contract. You will also be working under rights in the state they are based.

So you need to read the T/C on this & if they can change pricing without giving you a opt out.

Can't see any chargeback option on this.

Hi, I'm not registered as a business, the plan I took out with them is typically selected by someone who is a software developer as a hobby, which applies to me. I might become a business in the future but I am not at that stage yet. I have not read their T & C's which was careless of me, I bet they have a clause whereby they can raise prices as they choose without an opt out.

Bookworm105

_random_user_name 
I have not read their T & C's which was careless of me, I bet they have a clause whereby they can raise prices as they choose without an opt out.

you have answered your own question 

the situation may be the same as anyone who takes a contract with a broadband or phone supplier at a price per month for a fixed number of months but includes a price rise clause such as, for example, talktalk that impose RPI+% increase on a set date every 12 months. Making a mockery of being tied to them for the fixed period unless you have second guessed what others will be charging in x months time and think they will still be value for money.

DullGreyGuy

_random_user_name said:

born_again said:

I'm guessing that this is not personal use but a B2B contract. You will also be working under rights in the state they are based.

So you need to read the T/C on this & if they can change pricing without giving you a opt out.

Can't see any chargeback option on this.

Hi, I'm not registered as a business, the plan I took out with them is typically selected by someone who is a software developer as a hobby, which applies to me. I might become a business in the future but I am not at that stage yet. I have not read their T & C's which was careless of me, I bet they have a clause whereby they can raise prices as they choose without an opt out.

But you said...

_random_user_name said:

my commercially available app 

So you are a business, even if you are below the £1,000 registration threshold 

In the UK B2B contracts have much lower levels of protection than a B2C because any size of business is expected not to need the nanny state level of protection that consumers get. In the US protections are notably lower, though it does vary by state. It's in part why their prices are cheaper. 

With B2B the person that drafts the T&Cs can set the jurisdiction that covers the contract. So, nows time to actually read what you agreed to. In the first instance thats what you need to do and it will inevitably cover variation of terms etc. In the second instance you need to check the jurisdiction and see if they layer any protections on top but it would be surprising if there were. 

_random_user_name

I will read the terms, but yes I'd be very surprised if they failed to cover themselves for these price hikes. I'm up the creek without an oar basically, great. Could be worse, I'm still healthy and have a roof over my head and wasting most of $600 won't bankrupt me. Hard lesson learnt.