Amazon Prime faces a video class action lawsuit for violating the Video Privacy Protection Act. Amazon Prime was the first company to start playing ads in Prime Video programming. The lawsuit accuses Amazon of false advertising and deceptive practices because Prime Video serves commercials by default. Let’s learn all the details of the Amazon Prime video class action lawsuit.
The lawsuit alleges Prime shares specific video watches and requests data that can be weaponized against a consumer for marketing purposes. In addition, according to this lawsuit, people purchased and renewed their Amazon Prime subscriptions for years and believed that they would include ad-free streaming.
However, Amazon changed the deal, and for ad-free movies and TV show streaming, Amazon customers pay an additional $2.99 per month. That is unfair because customers are already paying for the free version. Then why does Amazon Prime charge an additional $2.99 for something?
What Plaintiff Said?
One of the residents of Eastvale, Calif., Wilbert Napoleon, is a Prime member who filed a case. He brought this case for himself and other Prime customers. In his complaint, he alleged that Amazon violates consumer protection laws in Washington and California, prohibiting unfair competition and deceptive business practices.
He said it was immoral, unethical, oppressive, and bad for consumers. This lawsuit seeks unspecific monetary damages, such as punitive damage and alleged deceptive conduct.
Amazon Response
Amazon replied in an email,’ We cannot comment on pending litigation. The lawsuit was filed on 9th February; meanwhile, amazon started on 29th Junary started running ads in Prime video content in big markets like the United States for a free experience. Some analysts forecasted that Prime Video ads will generate over $3 billion in revenue in 2024.
Furthermore, Amazon replied that Disney + and Netflix introduced ad-supported plans. However, Amazon Prime Video is offered in separate, low-priced tiers with ads. The CEO, Andy Jassy, told Wall Street Analysts that we are able to continue investing in content over time.
Prime Sells information to Third Parties Without Consent
Prime shares the video viewing information with third-party companies without customers’ consent. The Video Privacy Protection Act just allows the sharing of data for specific purposes like a warrant from law enforcement, for business reasons like debt collection, request processing, order fulfillment, and transfer of ownership.
The addition of streaming video inventory on Prime Video promises to provide a massive market share in digital ads. The tech company reported ad revenue of $12.6 billion, up 26 % over the past years. Most come from the NFL’s Thursday Night Football games on Prime Video US.
Most of the prime users are expected to let the commercials roll. Just 10 % of members plan to pay an extra 3 dollars monthly to avoid watching ads.
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According to a Civic Science survey, only 15 % of prime video users would pay the extra fee.
On the other side, it is expected that in 2025, in the United States, the TV and ad-supported VOD market will rise by about $16 billion. It will also led by Amazon $4 billion and $3 billion by Disney Hulu. Disney and Amazon are the largest drivers of AVOD ad revenue platforms.
