Per Italian law, price increases that Netflix has issued or will issue beyond April 2025 are legal. At that time, Netflix adjusted its terms to state that contract terms could one day change due to technological, security, or regulatory needs, to clarify clauses, or to provide changes to the service, Il Sole 24 Ore reported.
Price reduction demand
In its announcement, Movimento Consumatori said, per a Google translation, that Netflix was ordered to “reduce the prices of its current subscriptions by an amount equal to the unlawful increases.”
“For example, a premium customer who activated the subscription in 2017 and who today pays €19.99 is entitled to the same service for €11.99, while a standard customer who pays €13.99 will have to pay €9.99,” the advocacy group said.
Should Netflix fail to reduce prices and refund customers, Movimento Consumatori will launch a class-action lawsuit, Alessandro Mostaccio, the group’s president, said in a statement.
Netflix appealing
In a statement, a Netflix spokesperson said that Netflix is appealing the ruling, Il Sole 24 Ore reported.
“We take consumer rights very seriously and believe our terms and conditions have always been in line with Italian law and practice,” the spokesperson said.
In the meantime, the ruling represents a large and novel win for the many streaming subscribers who believe prices have gotten out of hand. Although originally pitched as cheaper, simpler alternatives to cable, streaming services have seen subscription prices balloon. The increases have come, in some cases, amid reduced features and content quality and more ads.
As customers continue to shift toward streaming over broadcast TV, unchecked price hikes are increasingly problematic. While this month’s ruling only affects Italian customers, it illustrates the dissatisfaction that streaming subscribers worldwide have with providers’ prices.
The ruling could also open the door to further legislation against Netflix or other streaming services, especially in the European Union, over previous pricing changes.