A class action lawsuit has been filed against Amazon by a California resident for its implementation of ads on Prime Video. The plaintiff alleges that the company’s new policy of showing limited ads and charging extra for ad-free streaming is a breach of consumer protection laws and misleading advertising. The court filing, published on Friday and reported earlier by The Hollywood Reporter, asks for the court to grant relief to the affected customers and certify the case as a class action.
The controversy began about a week and a half ago when Amazon announced that it would automatically show limited ads to its U.S. Prime Video subscribers. Those who wished to continue streaming without ads would have to pay an additional $2.99 per month. This news has upset many annual Amazon Prime subscribers, who were promised ad-free streaming when they signed up for the service.
In the lawsuit, the plaintiff argues that customers who subscribed to Amazon Prime before the ad policy change had a reasonable expectation of ad-free streaming for the duration of their subscription. This is due to the years of advertising done by the e-commerce giant, marketing the service as ad-free. However, the sudden change has deprived annual subscribers of their expected service, causing harm to their consumer rights.
The suit also claims that Amazon has breached its contracts with the affected customers by failing to provide ad-free streaming as promised. The company’s decision to implement ads without properly informing and compensating customers goes against the terms of the initial agreement. Furthermore, the sudden introduction of ads has left many subscribers feeling misled and betrayed by Amazon’s marketing tactics.
When Amazon first announced the change to its ad policy, it stated that it would send out an email to subscribers several weeks before the ads were introduced. The email would explain how customers could sign up for the ad-free option if they wished to do so. However, the plaintiff asserts that this email was never received, and the sudden appearance of ads caught many customers off guard.
Amazon is being sued after raising Prime Video prices
The lawsuit says it’s deceptive to charge $3 extra after advertising Prime was ‘commercial free’ for years
“Subscribers must now pay extra to get something they already paid for” pic.twitter.com/WADuWnCEFB
— Culture Crave 🍿 (@CultureCrave) February 12, 2024
In response to the lawsuit, Amazon declined to make a statement to FOX Business. The company has not provided any further explanation for its decision to implement ads on Prime Video or its handling of the situation. This has caused even more frustration among the affected customers, who feel that their concerns are being ignored by the company.
As streaming platforms continue to grow in popularity, ad-supported plans have become increasingly common. However, this move by Amazon has caused backlash, with many questioning why the company, already one of the largest in the world, would need to introduce ads to a service that subscribers have been paying for. The plaintiff’s lawsuit seeks to hold Amazon accountable for its actions and provide relief to the affected customers.
Can we all agree:@PrimeVideo including ads with the option to opt out ONLY if you pay extra really is as greedy as it gets. As if @Amazon doesn’t make enough money as is, but now they want users to pay more on top of their already increased prime prices to avoid ads?
wtf. pic.twitter.com/fP7QIi5yYz
— Boots2Passes (@Boots2Passes) February 5, 2024
The outcome of this lawsuit could have significant implications for streaming platforms and their policies on ads. If the court rules in favor of the plaintiff and certifies the case as a class action, it could set a precedent for how companies can implement changes to their services without proper notification and compensation for affected customers.
Additionally, the lawsuit could also bring to light any potential misleading advertising practices by Amazon and other companies in the industry. This case is a significant development in the increasing debate over the role of advertising in streaming services and its impact on consumers. The affected customers are hopeful for a resolution that will address their grievances and protect their consumer rights.
