Amazon Faces Class Action Lawsuit Over Addition of Ads to Prime Video
A class action lawsuit has been filed against Amazon.com, Inc. (AMZN) in California, claiming that the recent inclusion of ads on Prime Video is unfair and contradicts the service’s previous promise of being ad-free.
The lawsuit was filed in a California federal court on Friday, accusing Amazon of breaching contracts and violating state consumer protection laws.
Subscribers who initially signed up for Amazon Prime under different terms were affected when the service made its ad-supported tier the default option for subscribers.
Unfortunately, Prime Video’s ad-supported tier no longer includes Dolby Vision HDR or Dolby Atmos surround sound, features that were previously available to all Amazon Prime members.
According to reports from German website 4KFilme and subsequently confirmed by The Verge, Prime Video now streams content in HDR10 with Dolby Digital 5.1 for its ad-supported tier. To access the enhanced audio experience, users must pay an additional $2.99 for the ad-free service.
The class action lawsuit seeks $5 million in damages and aims to prevent Amazon from engaging in further deceptive practices on behalf of users who subscribed to Prime before December 28, 2023. Allegations in the suit include breach of contract, false advertising, and unfair competition, in violation of consumer protection laws in California and Washington.
For most Prime Video viewers, their subscription is bundled with Amazon Prime, priced at $14.99 per month or $139 per year for annual payments. A standalone subscription to Prime Video costs $9.99 per month, or $12.99 per month with the additional Dolby Vision HDR or Dolby Atmos surcharge. Ads were introduced to basic Prime Video subscriptions in the United States on January 29.