A federal judge in the Western District of Washington has dismissed a class-action lawsuit against Amazon, brought by Prime Video subscribers who claimed the company misled them by introducing advertisements to the streaming service unless they paid an additional fee. U.S. District Court Judge Barbara Jacobs Rothstein granted Amazon’s motion to dismiss the consolidated complaint on July 16, ruling that the company’s actions were permissible under its terms and conditions.
The lawsuit, originally filed in February 2024, accused Amazon of false advertising and deceptive practices after the company announced that Prime Video, previously marketed as an ad-free streaming service, would include ads unless subscribers paid an extra $2.99 per month for an ad-free experience. The plaintiffs argued that Amazon’s decision constituted a “bait and switch,” asserting that they had reasonably believed, based on years of ad-free streaming, that Prime Video would remain unchanged as part of their Prime membership.
In her ruling, Judge Rothstein rejected the plaintiffs’ claims, emphasizing that Amazon’s introduction of ads was not a price increase but a “benefit modification,” which was explicitly allowed under the company’s terms and conditions. The judge pointed out that Amazon’s agreements with subscribers permitted the company to “add or remove Prime membership benefits” at its discretion. She further noted that the plaintiffs’ assumption that Prime Video would remain ad-free indefinitely was not reasonable, given the clear language in the terms of service.
“For years, people purchased and renewed their Amazon Prime subscriptions believing that they would include ad-free streaming,” the original lawsuit stated. “But last month, Amazon changed the deal… This is not fair, because these subscribers already paid for the ad-free version.” However, Amazon countered in its motion to dismiss that it “never promised — to Prime members or anyone else — that Prime Video would be always, or entirely, ad-free.” The company’s defense rested on the flexibility provided by its terms, which allow modifications to Prime benefits without prior notice.
The plaintiffs filed a consolidated class-action complaint in September 2024, reiterating their claims of breach of contract and deceptive practices. However, Judge Rothstein’s decision marked the third unsuccessful attempt by the plaintiffs to plead viable claims against Amazon. “As this is Plaintiffs’ third attempt to plead viable claims against Amazon, and each time it has asserted substantially similar claims and theories, no further amendment will be permitted,” the judge wrote, dismissing the case with prejudice, meaning it cannot be refiled.
The ruling represents a significant victory for Amazon, which has faced growing scrutiny over its business practices as it expands its services. The introduction of ads to Prime Video, announced in late 2023, sparked widespread backlash among subscribers, many of whom felt blindsided by the change. The additional $2.99 monthly fee for ad-free streaming added to frustrations, particularly for long-time Prime members who viewed ad-free streaming as a core benefit of their subscription.
Consumer advocacy groups have expressed disappointment with the ruling, arguing that it underscores the challenges of holding large corporations accountable for changes to subscription services. “This decision highlights how companies can leverage vague terms of service to alter customer experiences without repercussions,” said Jane Carter, a spokesperson for Consumer Rights Now. Meanwhile, Amazon has maintained that the introduction of ads allows it to invest in more content for Prime Video, benefiting subscribers overall.
The case’s dismissal may set a precedent for similar lawsuits against streaming services, as companies increasingly introduce tiered pricing models that include ad-supported options. For now, Amazon Prime subscribers must decide whether to accept the ads or pay the additional fee for an ad-free experience. A copy of Judge Rothstein’s decision is available online for public review.
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