Italian court says Netflix must refund customers up to $576 over price hikes

[midian182]

In brief: Are you sick of Netflix's constant price increases? Italy certainly is: a Rome court has ruled that the hikes imposed on the country's subscribers over the last seven years were unlawful. The streaming giant has been ordered to refund customers, with Premium subscribers entitled to 500 euros (around $576).

An injunction action brought by consumer group Movimento Consumatori against Netflix Italia's price increases has been upheld by the Court of Rome.

The court ruled that the streamer owes subscribers in Italy refunds for price hikes implemented between 2017 and January 2024.

It added that each subscriber would be entitled to a reduction in the current subscription price to eliminate the impact of the increases. They would also be entitled to compensation where applicable.

According to the court, the clauses allowing the increases were unfair because they allowed changes to be made without stating a valid reason in the contract – a breach of the national Consumer Code.

Netflix's recently increased subscription prices

Lawyers Paolo Fiorio and Corrado Pinna said that the price hikes Netflix introduced in 2017, 2019, 2021, and 2024 amount to an extra 8 euros ($9.22) per month for Premium subscribers, while those on the Standard plan pay an extra 4 euros ($4.61) per month.

The lawyers said anyone who has been a Premium subscriber since 2017 is entitled to a refund of 500 euros. Those on the Standard plan are due 250 euros ($288).

The court also ordered the ruling to be published on Netflix Italia's website and in the leading national newspapers to inform customers that they are entitled to the refunds.

Alessandro Mostaccio, president of Movimento Consumatori, warned that if Netflix does not immediately reduce prices and reimburse customers, the organization will start a class action lawsuit against the company.

A Netflix spokesperson told Reuters that it would appeal the Italian court's ruling. They added that Netflix takes "consumer rights very seriously" and believes its terms have always complied with Italian laws and practice.

Consumer groups in Spain and Germany have launched similar cases against Netflix. Berlin and Cologne courts ruled that price increases based on vague, generic formulas are invalid because they do not let users understand the real reasons behind the higher costs.

Netflix raised its US prices again last month, pushing Premium to $27 per month and making its cheapest tier – the ad-supported one – $9 per month.

As is always the case when any streamer increases its prices, Netflix rolled out the excuse that these hikes reflect improvements to its "wide range of entertainment" and the quality of its service.

The latest increase was the eighth that Netflix has introduced to its Standard plan since it launched at $7.99 in November 2010. In just over 15 years, the price has increased 150% to $20.

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Italian court says Netflix must refund customers up to $576 over price hikes

 

[pnntmp]

Wow!
I was of the impression the prices were determined by the market, and if the customers are unhappy about it they simply don't buy the thing. Apparently that court thinks otherwise, and apparently in any normal country that decision should be overruled by a higher court.

I hate price hikes as much as everyone else, but since when the courts are in charge of pricing?

 

[Endymio]

I hate price hikes as much as everyone else, but since when the courts are in charge of pricing?

It's Italy .. you know the birthplace of fascism, and the country that's had its government collapse 70 times just since the end of WW2. You expecf them to understand basic economics?

 

[MSIGamer]

You guys are so used to getting ****ed over by big corporations. It's sad.
This is what consumer law looks like in Europe.

 

[Hecate91]

Sadly the corporate apologists seem to defend companies screwing over people, but this is how the legal system works when it isn't being bribed by lobbyists.

Netflix and other streaming platforms luered people in with cheap prices, then slowly ramped up pricing until it's overcharging everyone like it's cable or satellite TV with high prices. And the fact these streaming platforms hold content exclusively, with refusing to put a majority of it on physical media, trapping people into paying for streaming subscriptions.

 

[Endymio]

You guys are so used to getting ****ed over by big corporations. It's sad.
This is what consumer law looks like in Europe.

Lunacy like this is why the EU's economy has been growing several times slower than the US for the last few decades. It's now 1/3 smaller than the US, divided up among 100 million more people.

What's worse is some people think you're actually being "protected" by these antics. Many products and services already cost much more in the EU than the US. This ruling (assuming it stands, which is unlikely) will cause Netflix to raise its rates to compensate, and every other firm doing business there will also raise theirs to hedge against the risk of similar actions against them. In the end, only the lawyers and politicians will profit.

It's simply mind-boggling that anyone could contort logic to believe Netflix was "screwing people" over by routine, pre-announced price hikes. Someone may miss that notice for a month, maybe two, but if you continue to pay the higher price month after month, year after year, you're obviously consenting to it. This court action is nothing but outright theft, wearing a legal disguise.

 

[Plutoisaplanet]

You guys are so used to getting ****ed over by big corporations. It's sad.
This is what consumer law looks like in Europe.

Lol when I don’t like the price that is being charged (like with Netflix), I just choose a competitor instead. I haven’t subscribed to Netflix in almost 10 years. I don’t need the government to baby me and go after law-abiding companies because it’s too expensive. Besides, it’s just entertainment, not something essential.

 

[Starfals]

It's Italy .. you know the birthplace of fascism, and the country that's had its government collapse 70 times just since the end of WW2. You expecf them to understand basic economics?

At least now we got a taste of some good old American F too With the best government in the world. Best should probably be in big (no giant) " "

All im saying is, most countries suk, nothing new. I know mine does too. I dont know yours, but you can be sure it ain't perfect. In fact I'm scared to ask cus ill probably tell you a ton of horrible things that came out of there.
Italy is horrible, yeah. They even put you in jail for watching online football for free. Lolollolz. Most people are wrong or pick the wrong leaders. Sometimes it ends up very badly. WW2 or some more modern times. Look at the current situation in the Third World country - HaHamerica. Total collapse and greed. I won’t be surprised if it splits in 2, if there is civil war and before all of that? A king. Not before they ruin the whole world even more ofc.

P.s. Netflix used to be worth it, now they just ramp up prices, make horrible boring movies to fill up the pages and yea... everyone else left and make their own platform. The reason of Netflix was simple. Easy to watch stuff, great prices and kill piracy. Guess what's going back? Nobody has money (or wants to spend it) to subscribe to everything. Valve said it best. Offer a good service and people will eat it up. Do what Netflix and all other platforms do = Good game, you lost the war.

 

[disinfect8280]

Lol when I don’t like the price that is being charged (like with Netflix), I just choose a competitor instead. I haven’t subscribed to Netflix in almost 10 years. I don’t need the government to baby me and go after law-abiding companies because it’s too expensive. Besides, it’s just entertainment, not something essential.

Exactly. Just cancel. Simple as.

 

[ZbearIT]

Hahahahaha ... but how many Netflix-paid trolls are there out there? Italy might not be the best, but you only need to compare it with the US to realise it’s a paradise. NO WARS, no mad, murderous presidents (read: ICE), no laws against free speech, free healthcare for all, a euro so strong it crushes the dollar, AND A PEOPLE SO AWARE that they crush their government when it tries to control the judiciary. When on earth will YOU ever get there? Ah, I almost forgot: over 2,000 years of history, and the oldest university in the world, which was already teaching when your ancestors were still running about with clubs....

 

[Endymio]

Italy might not be the best, but you only need to compare it with the US to realise it’s a paradise....

One of my college friends recently retired to the Italian coast; he tells me most of his Italian neighbors don't heat their homes in winter, or do so sparingly, because, even though most live in tiny apartments a fraction the size of a US home, the cost of energy is prohibitive.

More generally, Italy's per-capita GDP is little over half that of the US, and their unemployment rate among recent graduates is over 17%. Hardly a paradise.

...NO WARS...

Yes, we've been protecting you from that since WW2.

...no laws against free speech...

Oops!

"...Italy is a notable EU country where journalists and private citizens can still face prison sentences (up to three years) for "defaming" or even simply insulting public officials. Article 21 of the Italian constitution allows for restrictions on publications, performances, and other exhibitions deemed offensive to "public morality", and criminal sentences can be enacted against anyone accused of statements considered to "glorify" anything dealing with the Mussolini era....Finally, Italy criminalizes any speech considered to inflame discrimination based on race, ethnicity, national origin, or religion."

What's truly ironic is that you can freely call the US president "murderous" -- as you just did -- but if I make the same statement about the Italian President, Italy can send me to prison for three years. So much for free speech.

Ah, I almost forgot: over 2,000 years of history, and the oldest university in the world...

A glorious past indeed-- 2000 years ago.

I do hope one day Italians will throw off their authoritarian-socialist yoke, and regain some of that glory.