Amazon’s Prime Video finds itself embroiled in a legal dispute as a Washington-based customer files a class-action lawsuit against the tech giant. The lawsuit alleges breach of contract and false advertising following Amazon’s decision to introduce an additional $2.99 charge for Prime customers to access ad-free streaming on Prime Video.
The complaint, filed earlier this month in Washington, revolves around a recent change in Amazon Prime’s terms regarding ad-free viewing on Prime Video. Formerly, Prime subscribers paid a standard fee of $14.99/month or $139/year, inclusive of ad-free streaming privileges. However, in January, Amazon altered the terms, requiring Prime subscribers to pay an extra $2.99/month for ad-free viewing. Regular Prime subscribers now have the option to continue watching content with ads.
The plaintiff contends that they, along with numerous other subscribers, initially purchased a Prime subscription with the expectation of enjoying ad-free streaming—a feature available since the launch of Prime Video in 2011. The complaint highlights the frustration of customers who had already committed to annual subscriptions before the change was implemented. For instance, those who subscribed in June would have paid $139, only to see the terms of their purchase altered midway through their subscription period, constituting a breach of contract.
Amazon’s introduction of the new ad-free tier follows a trend seen across various streaming services, including Netflix, which recently reported over 23 million Monthly Active Users (MAUs) on its ad-supported tier. However, the move has sparked discontent among some show creators who argue that their content was not designed with ad breaks in mind.
The lawsuit underscores the growing scrutiny over streaming service practices, particularly concerning subscription terms and the introduction of additional charges. As consumers increasingly rely on digital entertainment platforms, transparency and fairness in pricing and terms of service have become paramount.
The legal action against Amazon reflects broader concerns about the evolving landscape of streaming services and the need for clear communication and adherence to contractual obligations. Amazon’s response to the lawsuit and its handling of the Prime Video ad tier may set precedents for how similar disputes are resolved in the future, impacting subscribers and content creators alike.
As the legal proceedings unfold, stakeholders await Amazon’s response to the allegations, with IGN reaching out to the company for comment. The outcome of the lawsuit could have implications not only for Amazon but also for the broader streaming industry, shaping the future of subscription models and consumer rights.
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