German court rejects ad-on-Prime Video class action lawsuit

A German consumer association and nearly 324,000 plaintiffs have lost a class-action lawsuit against Amazon concerning advertisements shown on the Prime Video streaming service. The Bavarian Higher Regional Court dismissed the case in a ruling published Friday, stating that Amazon had neither promised an ad-free experience in its contract terms nor marketed the service exclusively as such.

The court's decision acknowledged that Amazon had informed its 17 million Prime customers via email in early 2024 about the introduction of limited advertising starting in February. Customers wishing to avoid ad interruptions were required to pay an additional 2.99 euros per month. The judges concluded that Amazon had not misled consumers, noting that the Prime subscription encompasses more than just video streaming, including benefits like free delivery on the online marketplace.

The Consumer Council of Saxony expressed disappointment, arguing the court failed to adequately consider the expectations of millions of consumers. "Prime Video was advertised and used for years as a premium streaming service with little or no advertising," stated board member Michael Hummel. "Consumers should not have to expect that an ongoing subscription will be devalued during the contract period through additional advertising and the removal of features."

Despite this legal victory for Amazon, the broader legal dispute remains unresolved. The Consumer Council of Saxony has filed a separate claim seeking the repayment of fees for ad-free viewing. Additionally, the Federation of German Consumer Organizations won an injunction against Amazon in a lower court, though Amazon has appealed that decision. Both these related proceedings are ongoing.