Netflix ordered to refund subscribers up to €500 for unlawful price hikes

A court in Rome has delivered a significant ruling regarding Netflix's pricing practices, declaring that the streaming giant's price increases imposed on Italian subscribers in 2017, 2019, 2021, and 2024 were unlawful. As a result, Netflix has been ordered to issue refunds to affected customers, with amounts potentially reaching up to €500 (approximately $576), depending on their subscription plans. The lawsuit was initiated by Movimento Consumatori, an Italian consumer advocacy organization, which contended that the price hikes breached the Consumer Code—a law designed to safeguard consumer rights in Italy. According to the Consumer Code, it is illegal for a business to unilaterally alter contract terms or service characteristics without a justified reason explicitly stated in the contract. The court's ruling, delivered on April 1, emphasized that Netflix's contracts failed to adequately inform subscribers about potential future price changes or the reasons behind them. Consequently, the court deemed the new pricing invalid and mandated the company to issue refunds to those impacted by these unlawful increases. Despite Netflix's claim of providing a 30-day notice prior to the price hikes and offering customers the option to cancel their subscriptions to sidestep the increased fees, the court maintained that these measures did not meet the legal requirements for justifying the hikes. According to the attorneys representing Movimento Consumatori, Paolo Fiorio and Corrado Pinna, the premium plan had unlawful increases totaling €8 per month over the specified years, while the standard plan saw an increase of €4 per month. A subscriber on the premium plan who has remained with Netflix since 2017 could be eligible for a refund of around €500, whereas standard plan subscribers could receive approximately €250. Additionally, the basic plan was affected by a €2 increase in October 2024. The court has given Netflix a 90-day window to notify millions of current and former subscribers about their refund rights through various channels, including email, mail, its website, and Italian newspapers. Failure to comply will result in penalties of €700 per day, as reported by Il Sole 24 Ore. As of Q1 2025, AGCOM, Italy's communications authority, indicated that Netflix had approximately 8.3 million unique users, while Movimento Consumatori estimated around 5.4 million customers in October.