The rollout for streaming ads on Amazon Prime Video could be going better.
The retail giant is already facing a class-action over the new ad-free tier that was introduced to Prime Video users on January 29. Historically, a subscription to Prime granted you full access to Amazon’s library with no commercial interruptions. However, Amazon made the decision to bring streaming ads into the equation but promised not to raise the price of a Prime subscription in the process. While this is technically true, users now had to pay an additional $2.99/month if they wanted to avoid the new ads.
That change came as quite the surprise to Prime users who were locked into yearly plans and now found their programs littered with ads. Cue the lawyers.
But when Amazon altered its terms, users who had signed up for annual subscriptions were also impacted. They allege the change is deceptive.
“Subscribers must now pay extra to get something they already paid for,” the complaint states.
In addition to being “unfair,” the suit alleges that Amazon illegally benefited by advertising Prime Video as “commercial-free” for years prior to launching its ad-supported tier, which “harms both consumers and honest competition,” according to the complaint.
The class action is reportedly seeking $5 million in damages and a “court order barring Amazon from engaging in further deceptive conduct on behalf of users who subscribed to Prime prior to Dec. 28, 2023.”
(Via The Hollywood Reporter)