Amazon Prime Video Lawsuit Dismissed: Judge Rules Ads Comply With Subscriber Terms

A federal judge has permanently dismissed a proposed class action lawsuit challenging Amazon.com's decision to introduce commercials on its Prime Video streaming service, unless users opted out for an additional monthly fee. This development was sealed on Wednesday following U.S. District Judge Barbara Jacobs Rothstein's conclusion that Amazon's subscriber terms explicitly permitted such changes.

Amazon Prime Video subscribers, who were paying an annual fee of $139, contended that they were misled by the company into believing that the service would remain free of advertisements. They argued that the introduction of commercials was tantamount to an unauthorized price increase, which they claimed breached their existing subscriber agreements and violated consumer protection laws in Washington state.

However, Judge Rothstein, presiding in Seattle, determined that the implementation of advertisements constituted a "benefit modification" thoroughly anticipated and sanctioned within the subscriber terms agreed upon by Amazon and its users. This modification was enacted starting January 2024.

The legal teams representing the subscribers have yet to provide any comment regarding the case's dismissal.