The streaming service Netflix has found itself in a legal soup. A court in Italy has ruled that the streaming giant’s Italian wing had unlawfully increased subscription prices over several years. As per reports, Italian subscribers could be entitled to refunds.
Netflix taken to court over alleged unlawful price hikes across seven years
Consumer group Movimento Consumatori has filed a lawsuit against Netflix for unlawfully increasing consumer prices. In a statement, the consumer group had stated that Netflix Italia had allowed subscription prices to increase from 2017 to January 2024 without any proper justification. The lawyers representing the consumer group stated that the Italian subscribers should be getting refunds, citing unfair clauses in the contract that shot up the subscription price.
“For the Premium Plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 amount to 8 euros ($9.22) a month, while for the Standard Plan the total is 4 euros a month,” the lawyers, Paolo Fiorio and Riccardo Pinna, representing the consumers, said.
“A premium subscriber who has paid for Netflix continuously from 2017 to the present day is entitled to a refund of about 500 euros, while a Standard subscriber is due a refund of about 250 euros,” the lawyers further stated.
The court found that Netflix failed to properly justify or clearly communicate these increases under Italian consumer law, stating that the clauses breached the national consumer code. According to the ruling, users must receive reduced subscription rates, refunds for overpayments, and compensation where applicable.
The court in Rome further stated that the decision should be conveyed on Netflix Italia’s website and in major national newspapers, ensuring consumers are informed that they can seek refunds as the disputed clauses in the contract are invalid.
However, Netflix is not accepting the ruling and has announced plans to appeal the decision. “We take consumer rights very seriously and believe our terms have always complied with Italian laws and practice,” the company said in a statement.
With Netflix planning to appeal, the Rome court’s decision is not final, and it’s not written in stone whether the consumers will receive the refunds or avail themselves of reduced subscription rates.
