“Unjustified increases”. Netflix ordered to return up to 500 euros to customers in Italy

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“Unjustified increases”. Netflix ordered to return up to 500 euros to customers in Italy

Italian law determines that it is unlawful to unilaterally modify the clauses of the contract, or the characteristics of the product or service to be provided, without a justification indicated in the contract itself.

A court in Rome ruled that price increases imposed by Netflix on subscribers in Italy in 2017, 2019, 2021 and 2024 were illegal. The court ordered the platform to reimburse affected customers in amounts that could reach 500 eurosdepending on the plan subscribed.

The legal action was brought by the Italian consumer protection association, which claimed that the increases violate the Consumer CodeItalian legislation aimed at protecting consumer rights,

This legislation establishes that it is illegal “unilaterally modify the clauses of the contract, or the characteristics of the product or service to be provided, without justification indicated in the contract itself”.

In its April 1 ruling, the court concluded that Netflix’s contracts should explain in advance why prices or other conditions might change change in the future.

How was it concluded that the increases were applied without customers having received valid justificationsthe court considered the new prices invalid and ordered Netflix to refund affected subscribers, despite the company allegedly having notified 30 days in advance about the increase in monthly fees and allowing customers to cancel their subscriptions.

“In the case of the premium plan, the illegal increases applied in 2017, 2019, 2021 and 2024 currently total 8 euros per month, while in the standard plan the increases currently amount to a total of 4 euros per month“, the lawyers of the Consumatori Movement detailed in a statement.

“A premium customer who has paid for Netflix uninterruptedly since 2017 until today tentitled to a refund of around 500 euroswhile a standard customer is entitled to a refund of around 250 euros. The illegal increases also affect the basic plan, which registered an increase of R$2 in 2024”, adds the statement.

According to , the court gave to Netflix 90 days to inform, by email, post, on its website and in Italian newspapers, current and former customers about their right to a refund, under penalty of a penalty of 700 euros per day.

According to data from August, AGCOM, the Italian communications authority, Netflix had 8.3 million unique users in the first quarter of 2025. According to the Consumatori Movement statement, the platform would have 5.4 million customers in October.

Under Italian law, price increases applied by Netflix after April 2025, or that will be applied from that date, are legal.

Nessa altura, according to Il Sole 24 Ore, the company changed its terms to indicate that contractual conditions could, one day, change due to technological, security or regulatory needs, to clarify clauses or to introduce changes to the service.

In a statement cited by Il Sole 24 Ore, a Netflix spokesperson said the company will appeal the decision. “We take consumer rights very seriously and believe that our terms and conditions have always been in line with Italian law and practice,” the spokesperson said.

The decision is a unusual and far-reaching victory for the many subscribers of streaming services, who consider that the prices of these services have risen unreasonably, says .

Although they were initially presented as cheaper alternatives and simple to cable television, streaming services have seen sharp increases in subscription prices.

In some cases, these increases occurred at the same time as a reduced functionality and quality of the contents, as well as a increased advertising.

The decision may also open the door to new legislationespecially in the European Union, to regulate price changes determined in the past by Netflix or other streaming services.

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