Overview

• Judge Barbara Rothstein ruled that adding commercials to Prime Video qualifies as a permitted benefit modification under Amazon’s subscription terms rather than a price hike.
• The court pointed to contract provisions that reserve Amazon’s right to change or discontinue any part of its service without notice.
• Last year, Amazon made the ad-supported tier the default for over 100 million Prime members, charging $2.99 per month for an ad-free option.
• Consumers had alleged breach of contract and deceptive “bait-and-switch” practices by accusing Amazon of imposing a hidden fee for ad-free viewing.
• The decision comes as streaming platforms face growing legal scrutiny of subscription and cancellation practices, exemplified by NBCUniversal’s $3.6 million Peacock settlement.