Italian Consumer Protection Organization Urges Netflix to Return Customer Funds

Italian consumer protection organization, Movimento Consumatori, urged Netflix to immediately return funds to customers, after the Rome district court ruled that the increase in the price of the service was illegal.

A district court in Rome recently ruled that Netflix must return funds to its users in Italy for the price increase that occurred between 2017 and January 2024.

President of Movimento Consumatori, Alessandro Mostaccio, in his press release stated that more than 25,000 Netflix users had complained to Movimento Consumatori, and said they were dissatisfied with the price increase over the years.

A Netflix spokesperson told Reuters that the company puts customers first and claims to be very serious about protecting consumer rights.

However, instead of returning consumer funds, the US company appealed on the grounds that the contract provisions used were in accordance with the regulations and practices in force in Italy.

Responding to the appeal filed by Netflix, Alessandro Mostaccio assessed that the move was not in line with the commitment made by the company.

"If Netflix intends to prioritize the rights of its subscribers and consumers above all other interests, they must respect the decision of the Rome Court and provide refunds," said the President of Movimento Consumatori, Alessandro Mostaccio, in a statement on its official website.

He also warned that the decision to continue legal proceedings could potentially trigger large-scale collective lawsuits, both in groups and individually, which could last for years and impact the company's reputation.

Meanwhile, the Movimento Consumatori's legal team, namely Paolo Fiorio and Corrado Pinna, questioned Netflix's argument that their policy was in line with market practices in Italy.

"We are surprised that Netflix is defending itself on the grounds of market practices. In Europe and Italy, market practices cannot override the law. The court has determined that Netflix has made an illegal price increase," the two said.

According to them, Premium customers are entitled to a refund of around 500 euros (Rp9.8 million), while Standard package customers should get back around 250 euros (Rp4.9 million).