Amazon Beats Ad Tier Class Action Over Subscription Trickery

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Amazon has been spared from a legal action that claimed the company was deceiving Prime members by imposing extra charges for ad-free movie and TV show streaming.

As a dedicated Prime member, I was thrilled to learn that Judge Barbara Rothstein dismissed the lawsuit against Amazon regarding changes in our subscription package. She determined that the inclusion of commercials doesn’t equate to a price increase, but rather an adjustment to the services we already enjoy. Amazon had made it clear in their terms that the bundle of Prime benefits is subject to change, and the court upheld this. So, fellow Prime enthusiasts, let’s embrace these minor modifications as part of our membership!

In the past year, Amazon switched its ad-supported tier to become the standard option for over 100 million of its subscribers, transforming the service into a powerful streaming platform with advertisements. Users were then required to pay an extra $2.99 each month if they wanted to watch without ads, leading them to claim this was essentially a mid-subscription price hike.

The action initiated a potential mass lawsuit from consumers who had purchased annual subscriptions. They accused the company of breaking contracts and infringing upon consumer rights through supposed deceptive practices, commonly known as “bait and switch.

As a gamer, I understand that when I pay for my Prime Video subscription, I’m essentially buying access to the service, not an ad-free version. The court made it clear that the addition of advertisements didn’t translate into any extra cost for those of us who weren’t willing to pay extra to watch without ads.

Rothstein highlighted that Amazon’s terms grant them the power to make adjustments or even halt certain services like Prime Video, as stated in their policy which also mentions potential periodic changes. Essentially, this means Amazon has wide leeway to alter Prime benefits on a whim and without prior warning, as per the court ruling.

In his conclusion, Judge Rothstein stated that adding ads to Prime Video by Amazon should not be considered a price hike; instead, it was an adjustment to the benefits, which had been planned and approved in the contracts between the parties.

Amazon didn’t immediately respond to a request for comment. 

There’s growing attention on how streaming subscriptions are managed, and on Wednesday, NBCUniversal settled a lawsuit for $3.6 million over allegations they didn’t make it simple enough for users to automatically cancel their recurring Peacock subscriptions. This decision was made following the nullification of the FTC’s “click-to-cancel” rule by a federal court, which had previously prohibited companies from making cancellation more complicated than the sign-up process. In simpler terms, the FTC wanted to prevent firms from making it harder for people to cancel subscriptions compared to when they originally signed up.

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2025-07-17 20:54