Amazon.com Inc. has successfully defended itself in a lawsuit filed by Prime Video subscribers who alleged the company misled them by introducing commercials into the streaming service after advertising it as ad-free. The lawsuit, filed in California, argued that Amazon’s decision to add ads to Prime Video in early 2024—unless subscribers paid an extra $2.99/month—was deceptive and violated consumer trust.

📺 Background: Prime Video's Ad-Supported Transition

In September 2023, Amazon announced that Prime Video would include "limited ads" starting early 2024 to support content investments. While users had long expected an ad-free experience as part of their Prime membership, Amazon offered an option to continue ad-free streaming for an additional monthly fee. The announcement sparked criticism from some Prime members, leading to the lawsuit.

🧑‍⚖️ Judge Rules in Amazon's Favor

U.S. District Judge Ricardo S. Martinez ruled that the plaintiffs failed to prove Amazon made misleading claims. He noted that Amazon clearly disclosed its policy changes and offered sufficient notice about the upcoming commercials. The judge found no breach of contract or consumer protection violations, concluding that the company operated within legal and ethical limits.

🧾 Plaintiffs Claimed Deceptive Practices

The plaintiffs, a group of Prime Video subscribers, alleged that Amazon violated consumer protection laws by not being transparent in its subscription model changes. They argued that they were promised uninterrupted, ad-free content as part of their paid Prime subscription and that Amazon’s new model constituted a “bait-and-switch.”

📉 Implications for Streaming Industry

This ruling could have far-reaching implications for the broader streaming industry, where more platforms are shifting toward hybrid subscription models that combine lower pricing with limited advertisements. The decision provides legal clarity for companies transitioning from traditional subscription formats to ad-supported tiers.

🗣️ Amazon Responds to Verdict

In a brief statement, Amazon welcomed the ruling and reiterated its commitment to transparency and customer satisfaction. “We’re pleased with the court’s decision and remain focused on delivering great value to our Prime members,” the company said.