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An Amazon Prime subscriber in California has initiated a class action lawsuit challenging the company’s introduction of advertisements on Prime Video. The plaintiff alleges that Amazon’s modification to include ads is misleading and violates consumer protection laws. The lawsuit was filed last Friday and was initially reported by The Hollywood Reporter.
Approximately ten days after the company automatically began displaying limited ads to U.S. subscribers, with an additional monthly charge for ad-free streaming, the legal action ensued. The ad-free option comes with a fee of $2.99.
The plaintiff seeks class action certification for individuals who purchased an annual Amazon Prime membership before December 28 of the previous year. The legal filing requests various forms of relief, including an injunction to prohibit deceptive conduct, damages, and a jury trial.
The lawsuit contends that consumers who subscribed to Amazon Prime before the ad implementation reasonably expected ad-free streaming, as advertised by the e-commerce giant over the years. Allegedly, Amazon’s marketing misled and harmed annual subscription consumers by not meeting their reasonable expectations. The filing also accuses Amazon of breaching contracts by failing to provide the promised ad-free streaming for annual members.
Amazon had announced in late September its intention to introduce limited ads to Prime Video, citing the need to invest in compelling content. The company had stated that it would notify Prime members weeks before introducing ads, providing information on opting for the ad-free option, with no change in the Prime subscription cost.
The rise of ad-supported plans among streaming platforms to augment revenue is highlighted, with Amazon’s move aligning with this trend.
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