Your price increases are illegal and you must return the money. There are those who will receive a 500 euro refund

We ended last March with news: Netflix the price went up again. It is true that the measure applies exclusively to the United States, but taking into account that it is already its umpteenth time, we know its modus operandi: it is the canary in the mine of a probable global rise that will also affect Europe.

And despite saying that it has been the umpteenth price increase for Netflix, it always comes as a bit of a surprise: after all, it is the second price increase in just two years. However, it is the clear trend in the sector. Paradoxically, just a few days later, a court in Rome has issued a historic ruling against Ted Sarandos’ platform: declare Netflix’s price increases between 2017 and 2024 illegal.

The sentence. The Roman court has declared that the contractual clauses that allow Netflix to unilaterally modify its prices and conditions of service without indicating a justified reason are void and contrary to the Italian Consumer Code. The ruling covers price increases applied between 2017 and January 2024, that is, subscription price increases implemented in 2017, 2019, 2021 and November 2024 (unless your contractual relationship with the platform was after January 2024).

As a consequence, it recognizes the right of those who have a subscription on the platform to a reduction in the current price of the subscription, to the refund of amounts unduly paid and to compensation for damages. In addition, it forces Netflix to publish the content of the ruling on its website and in the main national newspapers. within 90 daysas well as to inform its users.

Why is it important. Because it establishes a relevant legal precedent in Europe: streaming platforms cannot raise prices arbitrarily and unilaterally based on generic clauses. It is not that Netflix cannot raise its prices (like any other company), but that it did so without contractual justification, which the court considers an abuse. This ruling lays the foundations to demand from digital platforms more transparency and rigor in their contracts with consumers.

Context. The lawsuit comes from the Movimento Consumitori association (Italian consumers), which brought the case before the Court of Rome denouncing continued price increases from Netflix without explanation. Italian law requires that, if a company reserves the right to unilaterally modify a contract (ius variandi), you must specify from the beginning what causes could justify that change. Netflix did not do this: its contracts simply said that it could change the price whenever it wanted without giving reasons, the critical clauses are 3.5 and 6.4.

The court considers that giving 30 days’ notice and allowing cancellation is not enough since when someone subscribes to the platform they do not know under what conditions the service may become more expensive. In April 2025 Netflix modified its terms of use linking possible changes to specific causes, such as service improvements, regulatory demands or technological requirements.

How it affects users. Each subscribed person will have the right to a reduction in the current price, to a refund of more in that period and to compensation, which according to the Italian consumer association must be made spontaneously, although you can join the class action lawsuit in case that is not the case.

The ruling requires Netflix to reduce the prices of its current subscriptions by an amount equal to the illegal increases. We see it better with an example: if you are premium and activated your subscription in 2017, today you pay 19.99 euros but you are entitled to the service for 11.99 euros. If you are a standard customer, you would go from paying 13.99 euros to 9.99 euros. And be careful, because this measure applies both to those who currently have a subscription and to former customers within that period.

Up to 500 euros refund. MC lawyers explainPaolo Fiorio and Corrado Pinna, that for the premium plan, the illegal increases applied in 2017, 2019, 2021 and 2024 amount to 8 euros per month, for the standard plan they add up to a total of 4 euros per month and for the basic, 2 euros per month. Thus, a premium customer who has paid Netflix continuously from 2017 to today is entitled to a refund of approximately 500 euros, while a standard rate customer is entitled to a refund of approximately 250 euros.

Italy is the tip of the iceberg. Although the case has been reported in Italy, in other countries on the old continent there are also lawsuits filed against the platform: Netherlands also has a demand similar budding, FACUA reported it in Spain (yes ok still no progress) and in Germany the European Audiovisual Observatory echoes that the courts of Berlin and Cologne have already ruled in the same direction.

The basis is the same in all cases: the European Directive 93/13/EECwhich prohibits abusive clauses that generate a significant imbalance between the rights of the company and those of the consumer.

Netflix’s reaction. Immediately after learning of the Roman ruling, the platform declared its intention to appeal: “We will appeal the decision. At Netflix, our subscribers come first. We take consumer rights very seriously and we believe that our conditions have always been in line with Italian regulations and practices,” as reported by Reuters.

The appeal could modify or even reverse the ruling, so the case is not closed. However, the pressure on Netflix and the reputational damage has already been done. Netflix has always been the vanguard of the sector, so the future of this litigation could mark a before and after in the streaming sector.

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Cover | KATRIN BOLOVTSOVA