The Rome Court has ruled that the price increases applied to Netflix subscriptions between 2017 and 2024 were illegal. The decision paves the way for substantial refunds for millions of users.
The court sided with the Movimento Consumatori organization, which challenged in court the way the company unilaterally changed subscription prices, according to rainews.it.
Abusive Clauses: Prices Changed Without Justification
The judges ruled that contractual provisions allowing price changes without a clear reason are null and abusive, as they violate consumer protection legislation.
This concerns the successive increases introduced in 2017, 2019, 2021, and 2024, which gradually raised the cost of subscriptions.
For the premium plan, the cumulative price hikes now amount to approximately 8 euros per month, and for the standard plan, around 4 euros per month.
Substantial Refunds and Subscription Reductions
The court's decision grants the right to refunds for customers. According to the lawyers representing the consumer organization, the amounts could reach up to 500 euros for premium users who have continuously paid the subscription from 2017 until now.
For standard subscribers, the refunds are estimated at around 250 euros.
Additionally, users could also benefit from current price reductions. For example, a premium subscription could decrease from 19.99 euros to 11.99 euros, and a standard one from 13.99 euros to 9.99 euros.
Netflix Must Notify Its Customers
The court has requested the company to inform all affected consumers, including those who have unsubscribed in the meantime, about their right to a refund and the nullity of the contractual clauses.
Furthermore, Netflix must publish the decision both on its own website and in the national press.
The President of Movimento Consumatori, Alessandro Mostaccio, warned that if the measures are not promptly implemented, the organization will initiate a class action to ensure the unjustly paid amounts are refunded to all users.
The Decision Is Not Final
Netflix representatives have stated that they will appeal, arguing that the contractual terms complied with Italian legislation and practices.
Even though it does not directly apply outside Italy, the decision is relevant as it sets a legal precedent against clauses allowing platforms to unilaterally change prices and can be used by organizations in other countries for similar legal actions.