By TeeJay Small | Published
Netflix subscribers have been subject to many price hikes in recent years, as the streaming giant continues to extract every possible profit from its audience. If you feel that this price gouging is so bad that it should be banned, you are not alone. Apparently, the Italian government is taking action against Netflix, with Variety reporting that Italian customers may be entitled to millions in refunds. While this resonates less with US audiences, the ongoing legal case could set an important precedent for future streaming practices.
Per Variety, a Rome court has sided with a consumer advocacy group against Netflix. The petition argues that the price increase, which takes place from 2017 to 2024, directly violates Italy’s national consumer code. Specifically, Movimento Consumatori states that companies cannot independently increase their prices for subscription-based services without providing advanced notice and a valid reason for the change. Since Netflix did not make major changes to its service and did not give such notice, it is suspected that it is violating Italian consumer protection laws.
Netflix Fights Back
Reps from Netflix have already announced their intention to challenge the decision, although it is not clear on what grounds they should oppose it. The broadcaster has 90 days from the April 1 initial decision to file a lawsuit, or they will be fined $800 per day. Meanwhile, lawyers Paolo Fiorio and Riccardo Pinna want Netflix to refund hundreds of dollars to individual subscribers.
Specifically, the legal team explained that “Premium subscribers who paid for Netflix continuously from 2017 to today are entitled to a refund of approximately €500 ($577), while a standard subscriber should be refunded approximately €250 ($288).” Netflix boasts of signing up more than 8 million users in Italy by 2024, so these payments could reach hundreds of millions if realized.
Will Netflix Really Have to Pay?
At this point, it’s hard to say with any certainty whether Netflix will pay, or whether this lawsuit will have serious consequences for the streaming industry. Individual cases have been brought against broadcasters in European countries such as Germany, Poland, and the Netherlands, although they have yet to cause any major impact. But, if Netflix wants to keep raising its prices, it begs the question, what exactly are we paying for?
To paraphrase a proud Italian-American on the small screen, Netflix subscribers might tell the broadcaster, “You have 90 days to give me my money.” If Netflix wants to respond with a Tony Soprano quote of their own, I’d suggest “with all due respect, you have no idea what it’s like to be number one.”
