Amazon Sued After Adding Ads To Prime Video

(RTTNews) - A class action lawsuit has been filed against Amazon.com, Inc. (AMZN) in California, alleging that the addition of ads to Prime Video is unjust and contradicts the service's previous "ad-free" claim.

The lawsuit, filed in a California federal court on Friday, accuses Amazon of breaching contracts and violating state consumer protection laws.

Users, who had originally subscribed to Amazon Prime under different terms, were affected when the service shifted to making its ad-supported tier the default option for its subscribers.

Prime Video's ad-supported tier no longer offers Dolby Vision HDR or Dolby Atmos surround sound, features that were previously included in all Amazon Prime memberships.

As reported by the German website 4KFilme and subsequently by The Verge, Prime Video now streams content in HDR10 with Dolby Digital 5.1 for its ad-supported tier. To access the enhanced audio experience, users must pay an additional $2.99 for the ad-free service.

The class action lawsuit, seeking $5 million in damages, aims to prevent Amazon from engaging in further deceptive practices on behalf of users who subscribed to Prime before December 28, 2023. Allegations in the suit include breach of contract, false advertising, and unfair competition, in violation of consumer protection laws in California and Washington.

For most Prime Video viewers, their subscription is bundled with Amazon Prime, priced at $14.99 per month or $139 per year for annual payments. A standalone subscription to Prime Video costs $9.99 per month, or $12.99 per month with the additional Dolby Vision HDR or Dolby Atmos surcharge. Ads were introduced to basic Prime Video subscriptions in the United States on January 29.