Italian Court Orders Netflix to Reimburse Subscribers for Illegal Price Hikes

MILAN, Italy — A court in Milan has ordered Netflix Inc. to reimburse Italian subscribers for price hikes implemented since 2019, ruling that the increases violated consumer protection laws. The decision came in response to a class-action lawsuit brought by the Italian consumer associations Altroconsumo and Unione Nazionale Consumatori.

According to @WatcherGuru, the court found the hikes to be illegal under Italian regulations that require clear justification for such changes in subscription services.

The lawsuit, initiated in 2021, argued that Netflix failed to provide adequate notice or legal basis for raising its standard plan from €7.99 to €11.99 per month, and other tiers accordingly. Italian law mandates that service providers must inform customers of price changes with at least 60 days' notice and ensure the adjustments align with contractual terms.

The court agreed, stating that Netflix's unilateral increases without proper contractual amendments constituted unfair commercial practices.

Netflix, which launched in Italy in 2015, has over 3 million subscribers in the country as of recent estimates. The affected consumers number in the hundreds of thousands, primarily those on monthly plans who saw costs rise by up to 50% between 2019 and 2022.

The ruling applies to all subscribers who paid the higher rates during that period, potentially leading to refunds totaling millions of euros.

In its defense, Netflix had contended that the price adjustments were necessary to fund content investments and service improvements, a practice common across Europe. However, the court rejected this, emphasizing that such changes must comply with local consumer rights frameworks.

The company has not yet commented publicly on the verdict, but legal experts anticipate an appeal to Italy's higher courts.