Amazon Prime Video is facing backlash from subscribers over changes to its streaming service that now include ads by default. Some subscribers are so upset that they are filing a class action lawsuit against the e-commerce giant, saying they are getting “low value” for the service they paid for and that Amazon’s actions are “deceptive.” .
The Wrap report Amazon Prime Video launched ad-supported slots on January 29, much to the annoyance of most subscribers. If you want to maintain an ad-free viewing experience, you’ll need to pay an additional $2.99 per month on top of your regular Prime subscription fee. The changes prompted a class-action lawsuit in California last Friday accusing Amazon of breach of contract and violation of consumer protection laws.
The complaint alleges that Prime Video’s changes to subscription terms are “unfair,” “deceptive,” and “illegal.” It said subscribers who previously paid for ad-free service will receive “less value” unless they choose to pay an additional fee. The lawsuit seeks more than $5 million in damages on behalf of Prime members who joined before December 28, 2023. It also aims to prohibit Amazon from engaging in any further “deceptive conduct” in connection with the change.
During a recent earnings call, Amazon CEO Andy Jassy expressed confidence that the new ad-supported tier will enable continued investment in Prime Video content over the long term. But the plaintiffs argue that based on Amazon’s previous advertising and subscription terms, consumers reasonably expected to watch without ads.
The class action lawsuit alleges that adding an ad-supported layer by default violates consumer trust and contractual obligations. With more than 200 million Prime members worldwide, the outcome of this lawsuit could have a major impact on Amazon’s streaming strategy going forward. However, the company has not yet commented directly on the pending lawsuit.
The lawsuit follows other recent legal troubles involving Amazon’s subscription services. The FTC last year accused the company of using manipulative and coercive tactics to make it difficult for consumers to cancel their Prime memberships.
As Breitbart News reported last year:
The FTC filed a lawsuit Wednesday, alleging that Amazon intentionally deceived millions of consumers into signing up for Prime and then “thwarted” their attempts to cancel, under FTC law and online shoppers, according to a report. It was claimed that the Trust Restoration Act had been violated. report By CNBC.
“Amazon tricked people into subscribing without their consent, not only frustrating users, but also making them pay large sums of money,” FTC Chair Lina Khan said in a statement.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
