Amazon is in hot water with customers, and this time, the attention is on Prime Video. A class-action lawsuit was filed last week accusing the streaming platform of being “unfair,” “deceptive,” and “unlawful,” after rolling out a new ad-supported tier as the default for subscribers, and charging those who want an ad-free experience an extra $2.99. Customers are fed up with the absurd prices for ad-free streaming, and are taking a stand. Keep reading for more information.
Amazon Prime Video Raises Prices
A Prime Video subscription is included in the cost of Amazon Prime, which currently costs $14.99 per month, or $139 per year. Amazon Prime gets subscribers free and fast shipping, so for those who do a lot of online shopping, it’s a no brainer. But for those who just want to enjoy the movies and TV shows that Prime Video has to offer, a membership to Prime Video without the shipping benefits costs $8.99 per month.
On Jan. 29th, Prime Video released its newest pricing menu: The original prime memberships are no longer an ad-free experience. Rather, if customers want to avoid ads that can range anywhere from 15 seconds to 2 minutes, they must pay an extra $2.99 per month.
Class-Action Lawsuit Filed Against Amazon Prime Video
Customers are furious with the change, and individuals in California actually filed a class-action lawsuit, claiming that the switch in pricing is "unfair," "deceptive," and "unlawful," accusing it of committing breach of contract and violating consumer protection laws in the state for consumers who saw their subscription terms change due to the switch.
"Instead of receiving a subscription that included ad-free streaming of TV shows and movies, they received something worth less," the suit states. "They cannot enjoy ad-free streaming unless they pay an extra $2.99/month. Thus, Amazon's false advertisements harm consumers by depriving them of the reasonable expectations to which they are entitled."
The lawsuit is seeking $5M and a court order barring Amazon from engaging in further deceptive conduct on behalf of users who subscribed to Prime prior to Dec. 28th, 2023.
