According to The Hollywood Reporter, Amazon is defying lawsuit for misleading Prime consumers to charge a fee for watching movies and tv shows without ads.
The lawsuit was started because unhappy subscribers that purchased an annual plan filed a violation of state consumer protection laws and breach of contract for the alleged bait and switch.
Prime’s argument is that there was a previous discussion that the streaming service package is subject to change. It says that it “never guaranteed that any particular” positives of the bundle would “remain available indefinitely.”
“Amazon never promised—to Prime members or anyone else—that Prime Video would be always, or entirely, ad-free,” the order states.
Allegedly, Prime is an essential aspect of Amazon’s retail dominance via the Federal Trade Commission. That way subscribers stay in the company’s business with perks and access to Prime Video. As long as the streamer is cost-effective enough, the corporation will be satisfied.
This past year, Prime Video made the ad tier the default setting when new users joined. This, however, backfired as it became the largest ad sustained digital streaming platform. Members are required to pay an additional $2.99 if they want ad-free content.
In an attempt to dismiss the case, Amazon refers to its terms and conditions, which reads it “may choose in its sole discretion to add or remove Prime membership benefits.”
Although the streaming service was commended as ad-free, the business states that it is “free to change or eliminate that feature, at its discretion, at any time to hold otherwise would deprive Amazon of the benefit of its bargain.” The language is also directed “any increase in subscription fees will not apply” until the subscription resumes.
A similar class action was cited where in July the company misled customers about the benefits of Prime Video and made them pay an alleged $10 hidden delivery fee off purchases of Whole Foods. The members allegedly affirmed they depended on the ad for the “free and fast delivery”.
The lawsuit pursues a court order except for the Amazon MGM Studios owner from participating in more deceptive conduct for users that subscribed to the streamer before December 28, 2023. As well as 5 million dollars.
The alleged claims include false advertising, unfair competition breach of contract and other violations of consumer protection laws for California and Washington.