Rome Court Rules Netflix Price Hikes Unlawful, Orders Refunds

A Rome court has ruled that Netflix's subscription price increases in Italy, implemented in 2017, 2019, 2021, and 2024, were unlawful. The court ordered the streaming service to refund affected customers up to 500 euros (approximately $576), depending on their subscription plan. This decision stems from a lawsuit filed by the Italian consumer advocacy group Movimento Consumatori, which argued that the price hikes violated the Consumer Code, a law designed to protect consumer rights. The court determined that Netflix's contracts failed to provide valid justifications for the price increases, rendering them invalid.

Ars TechnicaInteresting EngineeringEuronewsNetflix court rules that 2017-24 subscription increases are unlawful, requiring refunds of up to €500.

The ruling affects millions of Netflix subscribers in Italy. According to Movimento Consumatori, a premium plan subscriber could claim a refund of around 500 euros, while a standard plan subscriber could receive approximately 250 euros. The court also mandated that Netflix must reduce its current subscription prices to reflect the unlawful increases. For instance, a premium customer currently paying €19.99 would be entitled to a new price of €11.99.

Ars TechnicaNetflix court rules that 2017-24 subscription increases are unlawful, requiring refunds of up to €500.Interesting EngineeringEuronews

In response to the ruling, Netflix announced its intention to appeal, asserting that its pricing practices have always complied with local regulations. A spokesperson stated, "We take consumer rights very seriously and believe that our terms and conditions have always been in line with Italian law and practice." Conversely, Movimento Consumatori's president, Alessandro Mostaccio, indicated that if Netflix does not comply with the ruling, they would consider initiating a class action lawsuit to ensure all users receive their refunds.

Netflix court rules that 2017-24 subscription increases are unlawful, requiring refunds of up to €500.Interesting EngineeringEuronewsArs Technica

This ruling is part of a broader trend across Europe, where consumer groups in countries like Germany and Spain have challenged similar pricing practices by Netflix. Courts in these nations have also deemed price changes based on vague contractual terms as unfair, aligning with European Directive 93/13/EEC, which protects consumers from unfair contract terms. The cumulative effect of these rulings is a regulatory shift that may compel streaming platforms to seek explicit consent from subscribers before implementing price increases.

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While the court's ruling is clear, there are conflicting reports regarding the exact number of affected subscribers. Estimates suggest that Netflix had approximately 5.4 million customers in Italy as of October 2025, but the number of those eligible for refunds remains unspecified. Additionally, the court's decision requires Netflix to inform all current and former subscribers of their rights within 90 days, or face a daily penalty of 700 euros for non-compliance.

Ars Technica

• “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.” — Paolo Fiorio, Attorney

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• “if Netflix does not immediately reduce prices and reimburse customers, we will start a class action lawsuit to guarantee all users the restitution of what they have unduly paid” — Alessandro Mostaccio, President of Movimento Consumatori

Euronews

• “We will appeal the decision. At Netflix, our subscribers come first. We take consumers' rights very seriously and we believe that our conditions have always been in line with Italian regulations and practices,” — Netflix Spokesperson

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This ruling not only impacts Netflix's operations in Italy but also signals a potential shift in how streaming services manage pricing across Europe, emphasizing the need for transparency in consumer contracts.

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