Netflix Ordered to Refund Italian Subscribers After Price Hike Ruling

An Italian court has ruled that Netflix must refund customers for price increases imposed between 2017 and 2024. The court determined that Netflix's price-hike clauses were void because the company did not provide sufficient justification for the increases. Affected customers could receive up to 500 euros, approximately $576, depending on their subscription plan.

The lawsuit was brought by Movimento Consumatori, an Italian consumer advocacy group. The group argued that the price hikes violated Italy's Consumer Code. This code prohibits professionals from unilaterally modifying contract clauses or service characteristics without a justified reason stated in the contract.

For customers with a premium plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 amount to 8 euros per month, according to attorneys Paolo Fiorio and Corrado Pinna, who assisted Movimento Consumatori. Standard plan subscribers saw increases of 4 euros per month. A premium customer who continuously paid for Netflix from 2017 is entitled to a refund of approximately 500 euros, while a standard customer is entitled to about 250 euros. The basic plan, which saw a 2-euro increase in October 2024, is also affected.

Netflix is appealing the ruling, according to a spokesperson. The company maintains that its terms and conditions have always been in line with Italian law and practice.

The court has given Netflix 90 days to inform current and former customers of their right to refunds via email, mail, its website, and Italian newspapers. Failure to comply will result in a penalty of 700 euros per day, according to Italian newspaper Il Sole 24 Ore.

Movimento Consumatori stated that Netflix was ordered to reduce the prices of its current subscriptions by an amount equal to the unlawful increases. For example, a premium customer who activated the subscription in 2017 and pays 19.99 euros will be entitled to the same service for 11.99 euros, while a standard customer who pays 13.99 euros will have to pay 9.99 euros.

Alessandro Mostaccio, president of Movimento Consumatori, said that the group will launch a class-action lawsuit if Netflix fails to reduce prices and refund customers.

In August, AGCOM, Italy’s communications authority, reported that Netflix had 8.3 million unique users in the first quarter of 2025. Movimento Consumatori estimates Netflix had 5.4 million customers in October. The ruling could open the door to further legislation against Netflix or other streaming services, especially in the European Union, over previous pricing changes, potentially affecting millions of subscribers beyond Italy.