US-based streaming giant Netflix faced a major blow in Italy after the Court of Rome upheld the lawsuit filed by a consumer group, Movimento Consumatori, over unfair price hikes in previous years. Interestingly, this came just days after Netflix hiked its prices in the US once again.
The court found that Netflix Italia stood behind unfair clauses while it changed subscription prices and conditions from 2017 through January 2024 without providing a justified reason in the contract. These clauses violate the Consumer Code and were therefore declared invalid.
The ruling further stated that Netflix Italia raised prices unilaterally in 2017, 2019, 2021, and 2024, and that these price increases were also declared illegitimate and subject to refund. A premium Netflix subscriber who has been paying without interruption since 2017 is entitled to a refund of up to 500 euros.
Meanwhile, a standard plan subscriber is entitled to a refund of up to 250 euros. Netflix is also required to cut down prices of its current subscriptions "by an amount equal to the unlawful increases," the consumer group noted.
The lawyers representing Movimento Consumatori said the unlawful amount totals 8 euros per month for premium users and 4 euros per month for the standard plan. It also affects the basic plan, which had a 2-euro increase in 2024.
In other words, those who bought the subscription in 2017 and currently pay 19.99 euros each month will be entitled to 11.99 euros for the same service. The court further ruled that Netflix must publish the ruling on its website and in major national newspapers to inform all users. It's noted that the number of Netflix Italia customers increased from 1.9 million in 2019 to about 5.4 million by October 2025.
That said, the streaming giant won't sit idle with the court's decision. A Netflix spokesperson said the company will appeal the ruling, adding that "we take consumer rights very seriously and believe our terms have always been in line with Italian law and practices."
On the other hand, the consumer group warned that it "will launch a class action lawsuit to ensure all users receive the refund of the amounts unduly paid" if Netflix doesn't act immediately to reduce prices and refund customers.
Image via DepositPhotos.com
3 Comments
Load the comments and join the conversation!
Read the comments, ask the editors questions, show respect and join the conversation.