Amazon Prime Video ad tier class action dismissed

A lawsuit that accuses Amazon of misleading the main subscribers by charging an additional charge to stream movies and TV shows without ads has been rejected.

US district judge Barbara Rothstein found on Friday that the e-commerce giant previously revealed that the bundle of the most important benefits can be changed. She said Amazon “never promised subscribers” that its service would remain ad-free.

“In contrast, both the most important expressions and video conditions repeatedly reserve the right to change, add or remove benefits associated with membership,” Rothstein wrote.

Amazon last year was about making his advertisement the standard for its over 100 million subscribers, which instantly made the service a streaming-I Juggernaut and the largest ad supported subscription current. Users were required to pay an additional $ 2.99 per Month to see without ads.

The move triggered a proposed class case from users who had signed up for annual subscriptions. They claimed violation of contract and violation of the state’s consumer protection legislation over the alleged “bait and switch.”

In Friday’s ruling, the court pointed out on the company’s terms that say that Amazon “can choose to add or remove prime membership benefits” and reserves the right “to interrupt parts of the” at any time without notice. “

Attorneys for subscribers emphasized that Amazon’s relocation to make the ad level effective an increase in the price beyond the framework of the company’s terms. The court disagreed and found that subscribers bought access to prime rather than an ad -free version of the service.

“It is true that Amazon’s introduction of advertising to its streaming service for the primary members who chose to pay more to keep their streaming ad-free, ultimately had an impact on the wallets of these subscribers with a” price increase “,” the order indicated . “However, the court is forced to maintain the distinction between a distribution of benefit and a price increase.”

This distinction, found Rothstein, is repeatedly reinforced in Amazon’s terms that allow beneficial changes and removal. She emphasized, “The introduction of advertising to Prime video alone did not result in any price rise outside the pocket at all. The subscription fee for subscribers who did not take any action did not change at all. ”

The only subscribers who experienced any price increase were those who voluntarily chose to incur one by choosing for the extra fee to avoid ads, the court said.

In the order, the court gave the court an opportunity for subscribers’ attorneys to set their claims in the trial. It comes after another federal judge last year rejected a proposed class case that accused Amazon of misleading consumers about the benefits of prime by getting them to pay an alleged hidden $ 9.95 delivery fee for some purchases from Whole Foods. These subscribers also claimed to have been dependent on advertisements for “free” delivery.