Netflix recently announced a price hike for its US customers across all its plans, as part of improvements to its "wide range of entertainment" and service quality. Since it launched at $7.99 in November 2010, this is the eighth price increase Netflix has introduced for its Standard plan. That means the price has increased by 150% in just over 15 years. While US customers have largely accepted their fate, Italian consumers seem to have had enough.
A court in Rome recently ruled that Netflix owed its Italian users a refund for price hikes between 2017 and January 2024. Each subscriber would be entitled to a reduction in their current subscription price, and Netflix Italia would notify customers within 90 days of their right to a refund and publish the ruling on its website, or face daily fines of € 700.
According to the court, the clauses allowing the increases violated Italy's Consumer Code by failing to set out valid grounds for the hikes. The lawsuit was originally filed by Movimento Consumatori, a consumer rights organization based in Rome, whose president, Alessandro Mostaccio, said over 25,000 Netflix users had complained about the price increases.

According to the lawyers representing the consumers, Premium subscribers since 2017 are entitled to a refund of 500 euros (about $575), while Standard plan subscribers are owed 250 euros (about $288). Mostaccio also warned that if Netflix does not reduce prices and refund customers, the organization would pursue a class action lawsuit.
In response, a Netflix spokesperson told Reuters that the company would appeal the ruling, adding that it takes "consumer rights very seriously" and that it believes its terms have always complied with Italian law. While the ruling applies only to Italy, consumer groups in Spain and Germany have launched similar cases against Netflix. If this trend continues across Europe, Netflix may have to lower subscription prices rather than raise them in every region.




