Amazon loses class action lawsuit against consumer advice center. Munich Regional Court prohibits advertising on Prime Video without the consent of the user.
The US company Amazon planned to advertise on its own streaming provider. There was subsequently a huge outcry and a class action lawsuit against the company. Now it is clear: Amazon is not allowed to place advertising.
Amazon loses
At the beginning of 2024, Amazon announced to users of its own streaming provider Amazon Prime that advertising would be placed on the platform in the future. In addition, if you didn’t want this, you had to pay an additional subscription fee of 2.99 euros. The headwind for the group was great, and the Federal Association of Consumer Organizations took action against it with a class action lawsuit.
This was now successful. Amazon loses the lawsuit. The Munich regional court ruled in favor of the users and found the Federal Association of Consumer Advice Centers right. The judges decided that the placement of advertising was not legal. The company deceives users into believing that a unilateral contract change is justified – but that is not the case. Customers pay for an ad-free subscription, and that has to be delivered. However, the judgment is not yet legally binding.
Votes for judgment
Both sides have already commented on the verdict. The board member of the Federal Association of Consumer Organizations, Ramona Pop, said: “This is a very important judgment. In the opinion of the consumer organization, members are still entitled to the ad-free option, at no additional cost.”
Amazon should now send a letter of correction to the users. However, a refund of funds is not expected at the moment because the company has lodged an objection. “We will review the ruling to determine our next steps,” a spokesman said.