Court orders Netflix to refund subscribers €500 each: What is the reason
Photo: Netflix will refund subscribers for price increases (Getty Images)
An Italian court has ruled that several increases in subscription prices for Netflix in the country were unlawful and has ordered the streaming service to reimburse users for overpayments accumulated over several years. The amount may reach up to 500 euros, according to Interesting Engineering.
According to the court ruling, Netflix violated consumer protection laws when it raised prices without clearly specified reasons in its user agreements. The case was brought by the Italian consumer organization Movimento Consumatori.
Under Italian law, companies are required to explicitly state the reasons for any changes to contract terms. The ruling noted that the service failed to do so.
Compensation may reach 500 euros
The court declared price increases between 2017 and 2024 legally invalid. According to lawyers Paolo Fiorio and Corrado Pinna, the unlawful increases amounted to €8 per month for the premium plan and €4 for the standard plan.
They explained that a premium subscriber who has been paying since 2017 could receive approximately €500 in compensation, while a standard-plan user could receive around €250.
The court also ordered Netflix to notify all affected subscribers within 90 days via email and public announcements. Otherwise, the service will face a fine of €700 per day.
In addition, the company was ordered to reduce current prices to reflect the unlawful increases. For example, a premium-plan user who signed up in 2017 and is currently paying €19.99 would be entitled to the same service for €11.99.
Netflix will appeal the court’s decision.
The company stated that it plans to challenge the ruling. A Netflix representative said the service takes consumer rights seriously and is confident that all terms comply with Italian law.
The company updated its terms of use in April 2025. They specify the circumstances under which prices may change, including technical or regulatory reasons.
The streaming service Netflix raised subscription prices across all plans on March 26. The cheapest plan now costs $8.99 per month, while the premium plan costs $26.99.
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The merger of the two platforms will give the company more than 200 million subscribers, enabling it to compete with other market leaders.
