A recent ruling by a court in Rome has determined that Netflix's price increases from 2017 to 2024 were illegal due to inadequate notice and reasoning provided to subscribers. The advocacy group Consumer Movement, which initiated the lawsuit, estimates that Netflix's 5.4 million users in Italy could be eligible for refunds of up to €500 based on their subscription tiers. The court found that Netflix failed to provide valid justifications for the hikes, which were attributed to rising production costs and investments. The court ruled that these reasons did not meet the necessary criteria for contract changes under European Union consumer protection laws, which require clear parameters for price adjustments. Netflix's most recent price increase was deemed legally implemented, as it was tied to specific service changes. The company has stated its intention to appeal the ruling, asserting that it has always acted in accordance with Italian law. Consumer Movement's president, Alessandro Mostaccio, urged Netflix to comply with the ruling to avoid prolonged litigation and damage to its reputation. This decision raises questions about Netflix's future revenue growth strategies, particularly in light of its limited ability to expand its subscriber base.