Netflix must refund customers for price hikes, Italian court rules
While Netflix prices seem to keep rising in the United States, the streaming giant may have to reverse that trend in Italy.
On Friday, a Rome court ruled that Netflix's price increases over the last seven years were unlawful, and that the streamer must refund its Italian customers, Reuters reported. Netflix apparently violated Italy's Consumer Code by changing the subscription price without a valid reason. Specifically, the ruling states that Netflix breached this code in 2017, 2019, 2021, and 2024, according to Euro News.
Each subscriber will be entitled to a reduction in their current subscription price and reimbursement of applicable past charges. Some customers could even get further compensation, Reuters reported.
Netflix told Reuters it will appeal the decision, and "We take consumer rights very seriously and believe our terms have always complied with Italian laws and practice."
The lawsuit was originally filed by consumer group Movimento Consumatori, or Consumer Movement. In a press release on Saturday, the group responded to Netflix's statement.
"If Netflix intends to put the rights of its subscribers and consumers before all other interests, it should respect the Rome Court ruling and provide refunds, thus saving itself from massive class-action and individual litigation that will last years, damaging its reputation and resulting trust," said Movimento Consumatori president Alessandro Mostaccio in a translated statement.
According to Mostaccio, over 25,000 Italian Netflix consumers have contacted Movimento Consumatori about the price hikes.
Movimento Consumatori's lawyers for the case, Paolo Fiorio and Corrado Pinna, stated, "It is surprising that Netflix defends its actions as compliant not only with the law but also with Italian market practices," in a translated statement. "In Europe and in Italy, market practices cannot derogate from the law, which, as the Court found, were violated by Netflix, which implemented unlawful price increases."