Amazon has prevailed in a class-action lawsuit that accused it of engaging in deceptive trade practices. The complaint, filed in February 2024, claimed that Amazon violated California’s consumer protection laws when it incorporated ads into a previously ad-free tier of Prime Video.
Following the change, Amazon Prime users needed to pay an extra $2.99/month on top of their basic subscription to continue to enjoy an ad-free experience. The lawsuit argued that instead of “receiving a subscription that included ad-free streaming of TV shows and movies, they received something worth less.” The plaintiffs called Amazon Prime’s change a “bait and switch.”
But unfortunately for subscribers looking for a payout, the judge didn’t see things that way. According to The Hollywood Reporter, US District Judge Barbara Rothstein moved to dismiss the lawsuit, finding that adding commercials didn’t constitute a price increase and was in fact merely a modification to the users’ subscription package.
The court noted that Amazon’s terms and conditions explicitly state that Prime’s benefit package may change over time. “Amazon’s introduction of advertisements to Prime Video was not a price increase; it was a benefit modification, and such modification was specifically contemplated and authorized by the parties’ governing agreements,” Judge Rothstein ruled.
As per the filing, the judge dismissed the suit “with prejudice,” meaning that consumers won’t be able to score a win with a revised version of the class-action lawsuit.
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Though this is a legal win for Amazon, we’ve seen consumers prevail against streaming giants in class lawsuits before. In September 2024, Peacock subscribers based in California gained the right to a payout of just over $18 after a judge decided the service had automatically renewed customers’ subscriptions without providing proper disclosures or authorization. (This week, Peacock subscribers were met with their third price hike in three years.)
Amazon, meanwhile, has other legal battles ahead. Another judge last week accused the company of behavior “tantamount to bad faith” by allegedly withholding thousands of documents in an FTC lawsuit that argues Amazon tricked millions of consumers into signing up for a Prime subscription.
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About Will McCurdy
Contributor
I’m a reporter covering weekend news. Before joining PCMag in 2024, I picked up bylines in BBC News, The Guardian, The Times of London, The Daily Beast, Vice, Slate, Fast Company, The Evening Standard, The i, TechRadar, and Decrypt Media.
I’ve been a PC gamer since you had to install games from multiple CD-ROMs by hand. As a reporter, I’m passionate about the intersection of tech and human lives. I’ve covered everything from crypto scandals to the art world, as well as conspiracy theories, UK politics, and Russia and foreign affairs.
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