A court in Rome has declared that Netflix’s seven-year price increases were unlawful because the company did not offer specific, justified reasons for the hikes in its contracts. Long-term Italian subscribers may be eligible for substantial refunds—up to €500 for Premium plan users and €250 for Standard plan users.

The Italian consumer group Movimento Consumatori sued Netflix for four price increases from 2017 to 2024. Netflix’s contracts reportedly lacked explanations for future price changes. According to Italy’s Consumer Code, and EU law, companies must provide a clear, justified reason for rate hikes in the contract. The court found that Netflix’s price increases violated these regulations.

The court also ordered Netflix to revert current prices to their previous levels, such as €11.99 instead of €19.99 for premium and €9.99 instead of €13.99 for standard. Netflix has 90 days to notify millions of current and former Italian customers via email, mail, its website, and newspapers. If it fails to do so, it will face a daily fine of €700.

The ruling aligns with similar decisions in Germany and Austria. A class action has been announced in the Netherlands.