ROME — A Rome court ruled on April 1, 2026, that price increases Netflix imposed on subscribers in Italy in 2017, 2019, 2021, and 2024 were unlawful. The court ordered the streaming company to refund affected customers by up to 500 euros, depending on their subscription plan.

The ruling determined that Netflix's contracts were required to explain in advance why prices or other terms might change in the future. The court found that the new prices were invalid because they were imposed without providing customers with valid justifications. Netflix had provided a 30-day advance notice of the higher fees and allowed customers to cancel their subscriptions to avoid the increases.

Italian consumer advocacy group Movimento Consumatori brought the lawsuit, alleging that the price hikes violated the Consumer Code, Italian legislation that aims to protect consumer rights. The Consumer Code states that it is unlawful for a professional to unilaterally modify the clauses of a contract or the characteristics of a product or service without a justified reason indicated in the contract itself.

Attorneys Paolo Fiorio and Corrado Pinna, who represented the consumer group, outlined the scope of the refunds. "For the premium plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 currently amount to a total of €8 per month, while for the standard plan, the increases currently amount to a total of €4 per month," they said. "A premium customer who has paid Netflix continuously from 2017 to today is entitled to a refund of approximately €500, while a standard customer is entitled to a refund of approximately €250."

The unlawful increases also affected the basic plan, which saw a 2-euro increase in October 2024. The court gave Netflix 90 days to inform millions of current and former customers via email, mail, its website, and Italian newspapers of their right to refunds or face a penalty of 700 euros per day.

According to AGCOM, Italy's communications authority, Netflix had 8.3 million unique users in the first quarter of 2025. The consumer group estimated that the company had 5.4 million customers in October.

Alessandro Mostaccio, president of the consumer group, warned of further legal action if the company does not comply. "Should Netflix fail to reduce prices and refund customers, Movimento Consumatori will launch a class-action lawsuit," Mostaccio said.

Netflix is appealing the ruling. A Netflix spokesperson said, "We take consumer rights very seriously and believe our terms and conditions have always been in line with Italian law and practice."

In April 2025, Netflix adjusted its terms to state that contract terms could change due to technological, security, or regulatory needs, to clarify clauses, or to provide changes to the service. Under Italian law, price increases that Netflix issues beyond April 2025 are legal.