Judge rules against proposed lawsuit over commercials on Amazon Prime
A person browses Amazon’s Prime Video app on a tablet.
Amazon doesn’t have to pay back Prime Video users upset about seeing commercials.
That was the ruling from U.S. District Judge Barbara Jacobs Rothstein, who dismissed a lawsuit Wednesday that accused the tech giant of misleading customers and breaching its promise of ad-free streaming. The case, brought by subscribers in Washington state, claimed the move violated consumer protection laws and effectively raised the price of Prime without proper disclosure.
But the judge disagreed, saying the ads were a permitted "benefit modification" under Amazon’s terms of service. The ad-supported version of Prime Video launched in January 2024, with users given the option to pay $2.99 per month to opt out.
Why was Amazon sued over Prime Video ads?
The backstory:
Prime Video subscribers—many of whom paid $139 annually for Amazon Prime—argued they had been led to believe that commercial-free streaming was part of their core subscription.
When Amazon announced the $2.99 monthly ad-free upgrade in late 2023 and rolled it out in early 2024, users claimed the change was effectively a price hike.
The plaintiffs filed a proposed class action, alleging the switch breached their subscriber agreement and violated Washington state’s consumer protection laws.
What we know:
The ruling is a major win for Amazon, which has faced scrutiny over how it rolled out ads to millions of paying subscribers.
- Judge Rothstein ruled that the change was legally allowed under Amazon’s user agreement.
- She called the commercials a "benefit modification" that subscribers had already agreed Amazon could make.
- The $2.99 monthly fee for ad-free viewing remains optional and is still in effect.
What we don't know:
For now, the decision leaves subscribers with limited legal recourse, though future challenges could arise depending on how Amazon evolves its pricing and ad strategies.
- Lawyers for the plaintiffs have not said whether they plan to appeal the ruling.
- It’s unclear whether similar lawsuits could emerge in other states or jurisdictions.
The Source: This article is based on reporting from Reuters, which first reported the dismissal of the Prime Video subscriber lawsuit on July 16, 2025. The outlet cited federal court documents and legal filings in Seattle. No comment was provided by attorneys representing the plaintiffs at the time of publication.