On February 7, 2025, a federal judge dismissed a class-action lawsuit challenging Amazon Prime Video's ad-supported tier. The lawsuit alleged that Amazon's introduction of advertisements violated the company's promise of an ad-free streaming experience for Prime subscribers.
The plaintiffs contended that Amazon's marketing materials and user agreements guaranteed ad-free content. They claim that the addition of ads constituted a breach of contract. However, the court found that Amazon's terms of service explicitly reserve the right to change the Prime Video service, including the addition of advertisements.
In the judge’s ruling, she states that while consumers may have expected an ad-free experience, Amazon's clear reservation of rights in its terms of service allows for such modifications. The judge emphasized that companies are permitted to alter their service offerings, as long as they disclose this in their agreements with consumers.
This decision highlights how companies possess the power to modify their offerings, including the introduction of advertisements, as long as they have clearly communicated these rights to their customers.
For Amazon Prime Video subscribers, this ruling means that the ad-supported tier will remain in place, and the company's actions have been deemed legally permissible under the current terms of service.
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About Mordehai Peretz
Mordehai Peretz is an Associate at Faruqi & Faruqi in the Los Angeles office, where he focuses on Consumer Protection law.
Mordehai Peretz
Associate at Faruqi & Faruqi, LLP
California office
Tel: (424) 256-2884
Fax: (424) 256-2885
E-mail: mperetz@faruqilaw.com
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