Netflix Ordered to Refund Up to EUR 500 Over Unlawful Price Hikes in Italy

Netflix has been ordered by a Rome court to refund subscribers in Italy after several past price hikes were ruled unlawful. The case was filed by consumer group Movimento Consumatori, which said the increases violated Italy's Consumer Code. The court found that Netflix did not clearly explain price changes in its contracts and declared the hikes invalid. The ruling highlights concerns over rising streaming costs and could influence future regulation beyond Italy, especially in the European Union.

Italy Court Orders Netflix Refunds, Calls Past Price Hikes Unlawful

According to a report by Ars Technica, the decision covers hikes introduced in 2017, 2019, 2021, and 2024, and customers could receive refunds of up to EUR 500 (roughly Rs. 53,600) depending on their subscription plan. The court ruled on April 1 that Netflix failed to properly explain in its contracts why prices could change.

The Italian court reportedly found that the increases were applied without adequate justification. As a result, the revised pricing was declared invalid, even though Netflix had given 30 days' notice and allowed users to cancel before the changes took effect.

Lawyers representing the consumer group said that cumulative increases reached EUR 8 (roughly Rs. 860) per month for premium plans and EUR 4 (roughly Rs. 400) per month for standard plans. This means long-term premium subscribers could claim around EUR 500 (roughly Rs. 53,600) in refunds, while standard users could receive about EUR 250 (roughly Rs. 26,800). The basic plan was also affected by a EUR 2 (roughly Rs. 200) increase introduced in October 2024.

The court has given Netflix 90 days to notify current and former subscribers about their right to refunds. The company is required to communicate this through email, postal mail, its website, and newspapers. An Italian publication reported that Netflix could face a penalty of EUR 700 (roughly Rs. 75,100) per day if it fails to comply.

The ruling could impact millions of users, according to data from Italy's communications authority AGCOM, which estimated that Netflix had 8.3 million unique users in the first quarter of 2025. Movimento Consumatori estimated that the platform had around 5.4 million customers in October.

The court also ordered Netflix to lower its current subscription prices by removing the impact of past unlawful increases. According to the consumer group, a premium plan currently priced at EUR 19.99 (roughly Rs. 21,100) should drop to EUR 11.99 (roughly Rs. 1,300) for eligible users, while the standard plan could fall from EUR 13.99 (roughly Rs. 1,500) to EUR 9.99 (roughly Rs. 1,100).

The report noted that any price increases introduced after April 2025 are considered valid. This is said to follow changes Netflix made to its terms, which now state that prices may change due to technological, regulatory, or service-related reasons. The consumer group reportedly said it would pursue a class-action lawsuit if Netflix fails to issue refunds and reduce prices, adding that further legal action could follow if needed.

Netflix said it will challenge the decision, adding that it believes its terms have always complied with Italian law, according to the report.