Amazon faces legal trouble over introducing ads on Prime Video | – Times of India

Amazon is facing a potential class action lawsuit accusing it of deceiving Prime subscribers by charging them extra to remove ads from its Prime Video streaming service.
Filed Friday in a California federal court, the lawsuit alleges Amazon breached contracts and violated consumer protection laws when it made ads the default for Prime Video customers in January. The change impacted all Prime members, including those with annual subscriptions who signed up before the ad-supported tier launch.
The lawsuit seeks over $5 million in damages and aims to stop Amazon from further “deceptive conduct” related to Prime Video ads. It claims the company illegally profited for years by advertising Prime Video as “commercial-free” before shifting most users to the ad-supported plan.
“Subscribers must now pay extra to get something they already paid for,” the complaint reads.
The proposed class action brings charges of breach of contract, false advertising, and violations of consumer protection laws in California and Washington on behalf of Prime members subscribed before Dec. 28, 2023.
Beyond the lawsuit, some Prime subscribers have noticed a loss of streaming quality on the ad-free plan. Subscribers revealed Amazon removed support for Dolby Vision and Dolby Atmos immersive audio unless they pay the additional $2.99 monthly ad-free fee.
The changes come nearly two weeks after Prime Video introduced the new subscription tiers. Meanwhile, users must opt-in to upgrade their Prime subscription and remove ads. Amazon has not commented publicly on removing Dolby Vision and Atmos from the base Prime Video plan.
The company’s subscription services, particularly Prime membership, face increased scrutiny. The Prime Video class action over the ads is one of many lawsuits that target Amazon’s subscription services and advertising claims. The FTC filed a lawsuit against Amazon last year for making it difficult for users to cancel their Prime subscriptions. The agency claimed that the company used misleading tactics to retain customers. An earlier lawsuit accused Amazon of deception regarding revoking access to purchased video content.

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