Amazon.com Defeats Lawsuit by Prime Video Subscribers Over Commercials
Amazon.com has won a significant legal battle after a federal court dismissed a class-action lawsuit filed by Prime Video subscribers. The subscribers had challenged the introduction of commercials on the platform, claiming it violated the terms of their subscription agreement.
Background of the Lawsuit
Prime Video subscribers alleged that Amazon’s introduction of ads, unless they paid an additional monthly fee, breached their contracts and constituted unfair business practices. These subscribers, many of whom pay an annual Prime membership fee, argued they expected an ad-free streaming experience as part of their subscription.
Court’s Decision
The court ruled in favor of Amazon, stating that the introduction of ads was a legitimate “benefit modification” under the existing terms of service. The judge emphasized that Amazon’s subscription agreement allowed changes to membership benefits and that adding commercials did not breach any contractual obligations.
What This Means for Prime Video Subscribers
Subscribers can continue to use the ad-supported tier at no extra cost or opt to pay an additional monthly fee to enjoy an ad-free experience. The court ruling confirmed that Amazon is within its rights to offer these options under its membership terms.
Amazon’s Position
Amazon has maintained that it never guaranteed a fully ad-free service and that the terms of service clearly permit modifications to the benefits provided. The company views the ad-supported tier as a way to offer flexible options to subscribers.
Impact on Streaming Industry
This ruling may set a precedent for other streaming platforms to introduce ad-supported tiers while protecting their right to modify service terms, potentially shifting the streaming market dynamics.
FREQUENTLY ASKED QUESTIONS (FAQ)
Why did Amazon introduce ads on Prime Video?
Amazon introduced ads to create a more affordable tier for subscribers who do not mind commercials, while offering an ad-free experience at an extra cost.
Can Prime Video subscribers avoid commercials?
Yes, by paying an additional monthly fee, subscribers can opt for the ad-free streaming option.
What was the lawsuit about?
Subscribers claimed the addition of ads breached their subscription agreements and was unfair because they expected an ad-free service.
What did the court decide?
The court ruled that Amazon’s addition of ads was a permissible benefit modification under the terms of service and did not violate subscriber contracts.
Will this affect other streaming platforms?
The ruling may encourage other streaming services to offer ad-supported tiers while protecting their right to modify membership benefits.
Published on: July 17, 2025
Published by: PAVAN
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed