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By Winston Cho Plus Icon Winston Cho More Stories by Winston * AI Companies Take Hit as Judge Says Artists Have "Public Interest" In Pursuing Lawsuits * Disney Settles Lawsuit Over Rescinded Executive Job Offer * Kevin Spacey's 'House of Cards' Legal Battle Takes New Turn View All February 12, 2024 11:34am * Share this article on Facebook * Share this article on Twitter * Share this article on Flipboard * Share this article on Email * Show additional share options * Share this article on Linkedin * Share this article on Pinit * Share this article on Reddit * Share this article on Tumblr * Share this article on Whatsapp * Share this article on Print * Share this article on Comment Prime Video logo Jakub Porzycki/NurPhoto/Getty Images * Share this article on Facebook * Share this article on Twitter * Share this article on Flipboard * Share this article on Email * Show additional share options * Share this article on Linkedin * Share this article on Pinit * Share this article on Reddit * Share this article on Tumblr * Share this article on Whatsapp * Share this article on Print * Share this article on Comment Logo text Amazon is facing a lawsuit accusing it of misleading Prime subscribers by charging them an additional fee to stream movies and TV shows without ads. A proposed class action lawsuit, filed Friday in California federal court, claims breach of contract and violations of state consumer protection laws on behalf of users who saw the terms of their subscriptions with Amazon change when it pivoted to making its ad tier the default for its over 100 million subscribers. In 2023, Amazon, which declined to comment, announced plans to turn on ads for all Prime Video viewers. The platform last month rolled out the change, instantly turning the service into a streaming-ad juggernaut and the largest ad-supported subscription streamer. Users must pay an additional $2.99 per month to watch without ads. Related Stories This Is Me...Now: A Love Story Movies Jennifer Lopez Financed Her New Prime Video Original Film: "Everybody Thought I Was Crazy" The 2024 AFC Wild Card playoff game between the Kansas City Chiefs and the Miami Dolphins TV Amazon Scores Exclusive NFL Playoff Game for Next Season But when Amazon altered its terms, users who had signed up for annual subscriptions were also impacted. They allege the change is deceptive. "Subscribers must now pay extra to get something they already paid for," the complaint states. In addition to being "unfair," the suit alleges that Amazon illegally benefited by advertising Prime Video as "commercial-free" for years prior to launching its ad-supported tier, which "harms both consumers and honest competition," according to the complaint. The proposed class action seeks at least $5 million and a court order barring Amazon from engaging in further deceptive conduct on behalf of users who subscribed to Prime prior to Dec. 28, 2023. It brings claims for breach of contract, false advertising and unfair competition, among other alleged violations of consumer protection laws in California and Washington. Last year, the Federal Trade Commission sued the tech giant for allegedly duping consumers into signing up for its Prime service and then impeding them from canceling their subscriptions. The suit argued Amazon employs a "manipulative" and "coercive" interface to trick users into enrolling in automatically renewing subscriptions. It also alleged that many subscribers intended to sign up solely for Prime Video, which is a lower-cost option. Prime is considered a vital part of Amazon's retail dominance because it keeps users locked into the company's marketplace by offering them perks, including access to Prime Video, according to the FTC. Amazon was also sued in 2020 for unfair competition and false advertising over the company reserving the right to end consumers' access to content purchased through Prime Video. A federal judge in 2022 dismissed the proposed class action, siding with Amazon on arguments that its terms of use tell users that movies and TV shows they purchased may become unavailable due to provider licensing restrictions. 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Essential Reads Prime Video logo Amazon Prime Video Ad Tier Sparks Class Action Lawsuit From Subscribers By Winston Cho Sofia Vergara Griselda Blanco Estate Settles Lawsuit With Netflix Over Sofia Vergara Show By Carly Thomas Retro robot AI Companies Take Hit as Judge Says Artists Have "Public Interest" In Pursuing Lawsuits By Winston Cho Walt Disney World Disney Settles Lawsuit Over Rescinded Executive Job Offer By Winston Cho THR cover 5 - low res - Donald Glover and Maya Erskine The Definitive Voice of Entertainment News Subscribe for full access to The Hollywood Reporter SEE MY OPTIONS Sign Up PMC Logo Most Popular Travis Kelce's First Words to Taylor Swift After Winning the Super Bowl Have Us Swooning Highest Paid Athletes in the World: Full List Behind Hulu's Sensational Truman Capote Show Is the Collector Who Quietly Built MoMA Damian Marley's Mom, Cindy Breakspeare, Incites Backlash Over Bob Marley Birthday Tribute You may also like [lazyload-f] This 2-in-1 Treadmill Is More Than $100 off on Amazon Today (And Folds Under Your Bed) 7 days ago [lazyload-f] What the Wine World Must Do to Survive--and Thrive 15 hours ago [lazyload-f] Larsa Pippen, Marcus Jordan Delete All Instagram Photos Together, Spark Breakup Rumors 6 hours ago THR cover 5 - low res - Donald Glover and Maya Erskine Subscriber Support * Get the Magazine * Customer Service * Back Issues * E-edition Access The Hollywood Reporter * About Us * Media Kit * Careers * Contact Us * Accessibility Legal * Terms of Use * Privacy Policy * California Privacy Rights * Privacy Preferences * AdChoices * Your Privacy Choices Follow Us * Icon Link Plus Icon facebook * Icon Link Plus Icon twitter * Icon Link Plus Icon instagram * Icon Link Plus Icon youtube Newsletter Sign Up Sign Up [ ] Subscribe Sign Up By providing your information, you agree to our Terms of Use and our Privacy Policy. 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