Amazon Prime Video Class-Action Lawsuit Dismissed by Federal Judge

A federal judge in Washington state made a decision recently regarding a class-action lawsuit against Amazon for including ads on Prime Video. The judge, U.S. District Judge Barbara J. Rothstein, dismissed the lawsuit, stating that the addition of ads did not equate to a price increase for Prime members. The plaintiffs claimed that Amazon’s introduction of ads essentially forced them to pay more to maintain the same video experience by opting out of ads for $2.99 per month on top of the annual Prime fee of $139.

Judge Rothstein disagreed with the plaintiffs, stating that the addition of ads represented a change in subscription benefits rather than a price increase. She pointed out that subscribers agree to a contract when joining Prime, giving Amazon the authority to modify services under the contract.

Rothstein clarified that no out-of-pocket price increase occurred for subscribers who did not opt out of ads. Only those who chose to pay the extra $2.99 per month experienced an increase in price to avoid ads.

This case is a part of a broader trend of legal challenges arising in the streaming industry. Recently, Los Angeles County settled with Peacock over complaints related to auto-renewal policies, while the Federal Trade Commission has been advocating for simplified subscription cancellation processes.

It’s interesting to note the differing approaches between Amazon and Netflix when it comes to advertising on their streaming platforms. While Amazon introduced ads with an option to opt out for an additional fee, Netflix has been exploring lower-priced subscription tiers with ads while maintaining ad-free plans to avoid upsetting members.

In conclusion, the judge’s ruling offers valuable insights into the evolving landscape of streaming services and the legal considerations surrounding subscription changes and ad integrations.