Amazon Faces Lawsuit Over Fees


A recent class action lawsuit has been filed against Amazon by a disgruntled Prime subscriber. If you’re a subscriber, you may have noticed some changes to your Prime Video experience, and a lot of people are not happy about it.

Let’s break it down. In late September, Amazon announced that it would be introducing limited ads to Prime Video content. This means that when you’re watching your favorite movies or TV shows on the platform, you may now encounter advertisements. And if you want to continue streaming without the ads, you have to pay an extra $2.99 per month.

However, one California resident and Prime subscriber is not taking this change lightly. He filed a class action lawsuit against Amazon, accusing the company of misleading advertising and breaching consumer protection laws.

The lawsuit argues that when people signed up for an annual Prime membership, they reasonably expected ad-free streaming of content for the duration of their subscription. And now, with the automatic introduction of ads, these subscribers feel like they’ve been misled and deprived of the service they signed up for.

According to the lawsuit, Amazon’s marketing of Prime Video over the years has promoted the service as ad-free, and now the company is not living up to its promises. The plaintiff is seeking to certify the lawsuit as a class action, covering all those who signed up for an annual Prime membership before December 28th of last year. They are also seeking damages, an injunction to stop Amazon’s “deceptive conduct,” and a jury trial.

Amazon has defended its decision to introduce ads, stating that it wants to continue investing in compelling content for Prime Video. And while the company did promise to email Prime members before the introduction of ads and give them the option to opt-out, the lawsuit argues that this is not enough to remedy the situation.

This lawsuit raises larger questions about the growing trend of ad-supported streaming plans. While it may be a way for platforms to boost revenue, it also risks alienating subscribers who signed up for a service expecting ad-free content.

As consumers, it’s important to hold companies accountable for their promises and to ensure that there is transparency in their advertising and business practices.

Fox Business