A proposed class action lawsuit has been initiated against Amazon, alleging that the company deceived Prime subscribers. Imagine returning home after a taxing day at work, only to find a shocking electricity bill amidst a challenging cost of living crisis. Seeking a brief respite, you decide to indulge in a couple of episodes of your favorite Amazon Prime show for some much-needed relaxation. However, as you press play on your TV, you’re greeted with something unexpected: advertisements.
On Friday, February 9th, a proposed class action lawsuit was filed in a California federal court against Amazon, claiming violations of consumer protection laws, breach of contract with subscribers, and unfair competition.
The controversy erupted when Amazon announced its decision to introduce “limited advertisements” to its Prime Video subscribers, effectively making the ad-supported tier the default subscription option. Amazon’s website explains that this change aims to sustain investments in compelling content over the long term. Starting in 2024, Prime Video shows and movies in the UK will feature limited advertisements. The company assures that the ad frequency will be significantly lower than traditional TV and other streaming services. Existing Prime members are not required to take any action, and there will be no immediate change to the price of Prime membership. Additionally, Amazon plans to introduce a new ad-free option, with pricing details to be disclosed later.
Amazon subsequently notified Prime members via email that advertisements would commence on January 29th, 2024, offering them the choice to pay an extra $2.99 per month to enjoy ad-free streaming. Unsurprisingly, this development has not been well-received by viewers.
The proposed complaint, representing users who subscribed to Prime before December 28th, 2023, and witnessed changes to their subscription terms, argues that subscribers are being compelled to pay additional fees for something they had already paid for, which it deems unfair. The complaint also contends that the ad-supported tier adversely affects consumers and undermines fair competition.
It alleges that Amazon’s previous promotion of Prime Video as “commercial-free” before introducing advertisements constitutes illegal benefit. The proposed class action seeks to prevent Amazon from engaging in similar practices in the future and demands damages exceeding $5 million.
