Amazon.com defeats lawsuit by Prime Video subscribers over commercials

A federal judge on Wednesday dismissed a proposed class action over Amazon.com's AMZN decision to begin showing commercials on its Prime Video service unless subscribers paid a $2.99 monthly opt-out fee.

Subscribers who paid $139 a year for Prime Video said Amazon had led them to believe the service would remain ad-free. They said the ads amounted to a price increase that breached their subscriber agreements and violated Washington state consumer protection laws.

U.S. District Judge Barbara Jacobs Rothstein in Seattle concluded, however, that the ads were a "benefit modification" specifically contemplated and authorized by Amazon and the subscribers. The change went into effect in January 2024.

Lawyers for the subscribers did not immediately respond to requests for comment.