Judge rules Amazon can show ads on Prime Video with fee

A federal judge has dismissed a lawsuit challenging Amazon’s decision to show ads on its Prime Video service unless users pay an extra monthly fee.

The complaint, filed as a proposed class action, argued that Amazon broke its promise of an ad-free experience for Prime members. Customers said the company misled them by adding a $2.99 fee to remove ads, despite already paying $139 per year for Prime Video.

The lawsuit claimed this move violated subscriber agreements and consumer protection laws in Washington state.

U.S. District Judge Barbara Jacobs Rothstein ruled that the change was allowed under Amazon’s terms. She said the ads were a “benefit modification” that was outlined in the agreement between Amazon and its subscribers.

The policy change began in January 2024.