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U.S. Judge dismisses lawsuit challenging Amazon Prime Video ads
Subscribers alleged Amazon misled them by adding ads to Prime Video without consent. A federal judge ruled the move was legally permissible under Amazon's subscriber terms.
The plaintiffs - Prime subscribers paying $139 annually - claimed they were misled into believing the service would remain ad-free. (Image credits: Unsplash)
A U.S. federal judge on Wednesday dismissed a proposed class action lawsuit that challenged Amazon.com's decision to introduce advertisements on its Prime Video service unless users opted out by paying an additional $2.99 per month.
As reported by Reuters, the plaintiffs - Prime subscribers paying $139 annually - claimed they were misled into believing the service would remain ad-free.
They argued that the addition of ads constituted a price hike, breaching Amazon's user agreements and violating Washington state's consumer protection laws.
However, U.S. District Judge Barbara Jacobs Rothstein in Seattle ruled that Amazon had acted within its rights. She concluded the ads represented a "benefit modification" that was explicitly contemplated and allowed under the company's terms of service. The change, announced in late 2023, took effect in January 2024.
Lawyers representing the subscribers did not immediately respond to requests for comment, Reuters added.
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The leaders highlighted how AI is emerging as a critical enabler in this shift from marketing’s traditional focus on new customers to a more sustainable model of driving growth from existing accounts.
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