The court has concluded that Netflix applied price increases based on clauses that did not comply with consumer protection regulations.
Specifically, the problem is that the platform could modify the conditions and prices without explaining a justified reason in the contract. This violates the Italian Consumer Code.
For that reason, the increases have been considered abusive and, therefore, null.
What users can claim
The judicial decision opens three avenues for affected customers:
- return of the amounts overpaid
- reduction of the current subscription price
- possible additional compensation
The calculations of consumer associations point to relevant figures.
A user with a premium plan since 2017 could claim up to about 500 euros
in the standard plan, around 250 euros
Netflix will have to notify millions of customers
The court obliges Netflix to inform users directly.
The company must communicate by email to those affected that they have the right to claim.
The deadline to comply with this obligation is 90 days.
In addition, the ruling will have to be made public on the platform itself and in national media.
Alternative: lower current prices
The resolution contemplates an additional option.
Netflix could adjust the current rates to the levels prior to the increases.
This would imply significant reductions in some plans.
Netflix will appeal the decision
The company has already announced that it will appeal the ruling.
It maintains that its conditions have always been compliant with Italian regulations and that the pricing model conforms to industry practices.