Advertising on Prime Video: Consumer Advice Centre Sues Amazon for 1.8 Billion

The Consumer Advice Centre in Saxony is taking legal action against Amazon regarding Prime Video advertisements, seeking restitution of €1.8 billion. This lawsuit comes as a response to the introduction of advertising interruptions in films and series on Amazon’s streaming service starting in February 2024. Customers who wish to avoid these ads are required to pay an additional fee of 3 euros per month on top of their regular subscription.

The Consumer Advice Centre argues that Amazon failed to obtain customer consent before implementing the price increase, making it legally invalid. In response, a class action lawsuit was filed last year involving 123,000 Prime customers, though this only represents a fraction of the estimated 17 million affected users.

To recover the remaining profits, the Consumer Advice Centre is now pursuing a profit disgorgement lawsuit against Amazon, aiming to reclaim an estimated minimum of €1.8 billion over three years. In the event that Amazon is required to pay this sum, the class action plaintiffs will be compensated first, with the surplus going to the Federal Republic of Germany.

The legal proceedings are expected to last for several years, with the Consumer Advice Centre partnering with the law firm Hasfeld and Burford Capital for litigation and financing. Michael Hummel, a legal expert at the Consumer Advice Centre, emphasizes the importance of upholding consumer rights in such cases and asserts that Amazon must be held accountable.

As the case unfolds, users affected by the advertisements can participate in the class action suit. The Consumer Advice Centre believes that the collaborative effort between Amazon and its legal partners will provide the resources necessary for a sustained legal battle, ensuring that consumer rights are protected.