According to The Hollywood Reporter, Amazon is defying lawsuit for allegedly misleading Prime consumers to charge a fee for watching movies and TV shows without ads. The Hollywood Reporter stated that unhappy subscribers who purchased an annual plan filed a violation of state consumer protection laws and breach of contract for the alleged bait and switch.
Prime Video argues that there was a previous discussion that the streaming service package is subject to change. The platform previously disclosed 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.
According to THR, Prime is allegedly 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. The corporation will be satisfied if the streamer is cost-effective enough.
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, as stated by The Hollywood Reporter. 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 for being 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 to “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.”
Via THR, the lawsuit pursued a court order, which exempted the Amazon MGM Studios owner, to stop participating in more deceptive conduct for users who 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 in California and Washington.