Amazon Prevails in Ad Tier Class Action Lawsuit for Subscription Deception

Amazon recently faced a lawsuit from Prime subscribers who felt they were misled about additional fees for ad-free streaming. A U.S. District Judge dismissed this lawsuit, stating that adding commercials did not mean a price increase, just a change to the subscription package. Amazon had clearly stated in its terms that Prime benefits could change.

In response to this issue, Amazon made the ad tier default for its 100+ million subscribers, requiring an extra $2.99 per month for an ad-free experience. Subscribers argued this was a price increase mid-subscription.

This situation led to a proposed class action lawsuit from annual subscribers who believed Amazon engaged in a “bait and switch” tactic. However, the court ruled that subscribers bought access to Prime Video, not a guaranteed ad-free service. For subscribers who didn’t pay the extra fee, there was no direct price increase due to the introduction of ads.