July 16 (Reuters) - A federal judge on Wednesday
dismissed a proposed class action over Amazon.com's ( AMZN )
decision to begin showing commercials on its Prime Video service
unless subscribers paid a $2.99 monthly opt-out fee.
Subscribers who paid $139 a year for Prime Video said Amazon ( AMZN )
had led them to believe the service would remain ad-free. They
said the ads amounted to a price increase that breached their
subscriber agreements and violated Washington state consumer
protection laws.
U.S. District Judge Barbara Jacobs Rothstein in Seattle
concluded, however, that the ads were a "benefit modification"
specifically contemplated and authorized by Amazon ( AMZN ) and the
subscribers. The change went into effect in January 2024.
Lawyers for the subscribers did not immediately respond to
requests for comment.