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Tuesday, July 23, 2024

Amazon Prime Video Class Action Lawsuit Over Ad-Supported Tier Sparks Consumer Outrage


Amazon Prime Video Class Action Lawsuit

You see, an important part of Amazon Prime Video’s deal has always been the ability to stream without ads, right? And we all are familiar with that when we sign up for their premium plans. This very perk was included with both the full Amazon Prime plan, which costs $14.99 a month or $139 a year, and the Prime Video plan, which costs $8.99 a month on its own. Things changed, though, when Amazon added a new tier with ads on January 29, 2024. As per this tier update from Amazon, now, to keep enjoying ad-free content, subscribers need to cough up an extra $2.99 each month. It is not just the extra charge that got people talking negative things about Amazon, nah, it was the fact that Amazon didn’t let the users know in advance, nor did they specify this would happen in the future. That’s why we saw the rise of this Amazon Prime Video Class Action Lawsuit.


What’s the Matter with the Case?

You see, Wilbert Napoleon brought a class-action case to the courts in California on February 9, 2024. What’s wrong and why was this Amazon Prime Video Class Action Lawsuit filed in the first place? Well, people say that Amazon’s new tier with ads breaks the original subscription deal. Some subscribers say that since they paid for an ad-free experience, they should get it for free until the end of their contract. The lawsuit also says that Amazon lied to customers and broke consumer protection rules by telling them from the start that the service would be free of ads.


What Are The Main Points of the Plaintiff?

What subscribers thought would happen is at the heart of the case. People who signed up for Amazon Prime Video thought they would get content that would never end and would not have any ads. Ads suddenly getting in the way, unless you pay more, changes the rules. And as you can guess already, people who have subscribed say it’s unfair to charge extra to keep the amount of service they paid for. Amazon is being sued for $5 million in losses and to stop them from doing this again.


What Amazon Has to Say About It

Amazon hasn’t said anything about the Amazon Prime Video Class Action Lawsuit yet. But on a recent earnings call, CEO Andy Jassy gave hints that adding ads would let Amazon spend more on original, high-quality content. This shows that Amazon thinks the ad-supported tier is important for staying competitive and funding content creation. All in all, the case says that Amazon’s way of adding the ad-supported tier is unfair to current subscribers, even though it has a business side to it.


What Might Come Next?

So yes, the case could make things rough for Amazon and its customers if it wins. Amazon may need to pay those who were hurt or change the rules about ads. Down the line though, this could lead to bigger changes in how streaming services handle terms of service and let users know about them. With ad-supported tiers on services like Netflix and Disney+ as well, the lawsuit’s result could change the way the industry works as a whole, you know? Though, for users, it shows how important it is to know the terms of their subscription and be aware of any changes that might make their service less valuable.


Parul is an experienced blogger, author and lawyer who also works as an SEO content writer, copywriter and social media enthusiast. She creates compelling legal content that engages readers and improves website visibility. Linkedin

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