Netflix is facing a major legal setback in Italy. This comes after a Rome court ruled that the streaming platform’s price increases between 2017 and 2024 were unlawful. The Italian court has ordered refunds for affected subscribers.
The decision could result in premium users in the country receiving up to €500, depending on the duration of their subscriptions, potentially impacting millions of customers. According to a report by Ars Technica, the court found that Netflix did not provide adequate justification within its contracts for raising prices, even though users were given advance notice and the option to cancel. The ruling, stemming from a case filed by consumer group Movimento Consumatori, adds pressure on the company’s pricing practices and highlights regulatory scrutiny around subscription models. “For the premium plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 currently amount to a total of €8 per month, while for the standard plan, the increases currently amount to a total of €4 per month. A premium customer who has paid Netflix continuously from 2017 to today is entitled to a refund of approximately €500, while a standard customer is entitled to a refund of approximately 250 euros,” said attorneys Paolo Fiorio and Corrado Pinna said in the ruling (translated from Italian by Ars Technica)
What Italian court said about Netflix’s ‘unlawful’ price hike
According to the report, the court found that Netflix’s prior pricing adjustments violated Italy’s Consumer Code, which prohibits companies from unilaterally changing contract terms without a clear reason.
According to the ruling, Netflix’s agreements did not sufficiently explain in advance why subscription prices could change, making the increases invalid.The court has given Netflix 90 days to notify current and former subscribers about their eligibility for refunds or face a penalty of €700 per day. The company is appealing the decision, stating, “We take consumer rights very seriously and believe our terms and conditions have always been in line with Italian law and practice,” the report adds.It’s important to note that the ruling applies only to price increases made before April 2025, after which Netflix updated its terms to better justify potential changes. However, the case signals growing scrutiny of subscription pricing models, particularly in markets where regulators are closely monitoring consumer protection and transparency.
