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.
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.