Subscribers could receive hundreds back after ruling.
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A major court ruling could see millions of Netflix subscribers receive money back after years of rising fees.
An Italian court has ruled that a series of Netflix subscription price hikes were not legally justified, ordering the company to refund affected customers.
The case, brought by consumer group Movimento Consumatori, argued that the increases were introduced without clear contractual grounds, according to Il Sole 24 Ore.
Gradual increases questioned
Netflix raised its subscription prices multiple times over recent years, with increases affecting both Premium and Standard plans.
Lawyers representing consumers said the cumulative impact was significant.
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“For the Premium Plan, the unlawful increases applied in 2017, 2019, 2021 and 2024 amount to €8 a month, while for the Standard Plan the total is €4 a month,” they said.
More than 5.4 million subscribers are believed to be affected.
At the centre of the ruling was the principle that companies cannot change key contract terms without a clear and justified reason.
Judges found that Netflix’s pricing clauses did not adequately explain the basis for the increases, making them incompatible with Italy’s consumer protection laws.
As a result, the court declared those clauses invalid.
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Potential payouts
According to the lawyers, long-term subscribers could be entitled to substantial refunds.
“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,” they said.
Netflix has also been ordered to publicize the ruling to ensure customers are aware of their rights.
Netflix said it would challenge the decision.
“We will appeal the decision. At Netflix, our members come first. We take consumer rights very seriously and believe our terms and conditions have always been in line with Italian law and practice,” a spokesperson told Il Sole 24 Ore.
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Sources: Il Sole 24 Ore, Movimento Consumatori, Netflix.