Amazon Prime Video is facing backlash from subscribers over changes to its streaming service that now includes ads by default. Some subscribers are so upset that they have filed a class action lawsuit against the e-commerce giant, alleging that the service they paid for is now “something worth less,” and that Amazon’s actions are “deceptive.”
The Wrap reports that Amazon Prime Video rolled out an ad-supported tier on January 29, much to the annoyance of most subscribers. Those wishing to retain an ad-free viewing experience are now required to pay an additional $2.99 per month on top of the regular Prime subscription fee. This change has prompted a class action lawsuit filed in California last Friday accusing Amazon of breach of contract and violation of consumer protection laws.
The lawsuit alleges that the changes to Prime Video’s subscription terms are “unfair,” “deceptive,” and “unlawful.” It states that subscribers who previously paid for an ad-free service have now received “something worth less” unless they opt to pay extra. The suit seeks over $5 million in damages on behalf of Prime members who subscribed before December 28, 2023. It also aims to bar Amazon from further “deceptive conduct” related to the changes.
During a recent earnings call, Amazon CEO Andy Jassy expressed confidence that the new ad-supported tier would enable continued investments in Prime Video content over time. However, plaintiffs claim that consumers reasonably expected ad-free viewing based on Amazon’s previous advertising and subscription terms.
The class action suit argues that adding an ad-supported tier by default represents a violation of consumer trust and contractual obligations. With over 200 million Prime subscribers globally, the outcome of this lawsuit could have major implications for Amazon’s streaming strategy going forward. But the company has yet to comment directly on the pending litigation.
This lawsuit follows other recent legal trouble for Amazon’s subscription services. Last year, the FTC accused the company of using manipulative and coercive tactics to make it difficult for consumers to unsubscribe from Prime memberships.
As Breitbart News reported last year:
The FTC filed the lawsuit on Wednesday, claiming Amazon violated the FTC Act and the Restore Online Shoppers’ Confidence Act when it intentionally tricked millions of its consumers into signing up for Prime and then “sabotaged” their attempts to cancel, according to a report by CNBC.
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Khan said.
Read more at the Wrap here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.