Netflix's subscription price increases are unlawful: users will have to pay compensation.
The Rome court has upheld the action brought by the Consumer Movement, all the detailsNetflix (Ansa)
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The Court of Rome upheld the action brought by Movimento Consumatori against Netflix Italia, finding the clauses that allowed subscription prices and other contractual terms to be changed from 2017 to January 2024 to be unfair and therefore invalid. These clauses, in violation of the Consumer Code, allowed changes without specifying a justified reason in the contract.
As a result, the unilateral subscription increases implemented by Netflix in 2017, 2019, 2021, and November 2024 (with the exception of increases related to contracts signed after January 2024) have been declared unlawful. Each subscriber will be entitled to a reduction in the current subscription price, the refund of any amounts unduly paid, and any compensation for damages.
The ruling also requires Netflix to reduce current subscription prices by the same amount as the unlawful increases. For example, a premium customer who activated a subscription in 2017 and is currently paying €19.99 is entitled to the same service for €11.99, while a standard customer paying €13.99 will have to pay €9.99. "If Netflix does not immediately reduce prices and refund customers," said Alessandro Mostaccio, president of Movimento Consumatori, "we will launch a class action lawsuit to ensure all users receive the refund of the amounts they unduly paid."
The action was filed by Movimento Consumatori last January and aimed to block the clauses that give Netflix the power to unilaterally and without justification vary the terms and conditions of the contract, including the financial terms . The court also ordered Netflix to publish the content of the ruling on its website and in major national newspapers and to inform all consumers, including those who had cancelled their subscriptions, of the invalidity of the clauses and of their right to a refund.
"The decision," Paolo Fiorio and Corrado Pinna, lawyers who assisted Movimento Consumatori in the case, specify, "affects millions of consumers. It is estimated that, in Italy, Netflix has gone from 1.9 million customers in 2019 to approximately 5.4 million by October 2025. For the premium plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 currently amount to a total of 8 euros per month, while for the standard plan, the increases currently amount to a total of 4 euros per month. A premium customer who has paid Netflix continuously from 2017 to today is entitled to a refund of approximately 500 euros, while a standard customer is entitled to a refund of approximately 250 euros. The unlawful increases also affect the basic plan, which saw a 2-euro increase in October 2024. "
(Unioneonline)
