Amazon Prime customers beware: Consumer advice center is planning a class action lawsuit over advertising

Amazon Prime customers beware: Consumer advice center is planning a class action lawsuit over advertising

According to a report by www.lvz.de, the Saxony Consumer Center is planning a class action lawsuit against the streaming service Amazon Prime Video. The reason for this is that Amazon wants to display more advertising on its paid content in the future. The consumer advice center considers this introduction to be unlawful and claims that the service was advertised as being ad-free in the past. The class action lawsuit is expected to start in two to three months and is aimed at Amazon Prime Video users across Germany who were already subscribers before Monday. If successful, the injured users should be reimbursed for the additional costs they paid.

The introduction of additional advertising on Amazon Prime Video could have far-reaching effects for the company. First of all, it could lead to a churn of subscribers who find the additional advertising annoying. In the long term, this could lead to a loss of subscribers and thus a decline in revenue from the streaming service. In addition, the legal dispute with the consumer advice center could lead to negative publicity and damage customers' trust in the company.

If a class action lawsuit is successful, the financial impact for Amazon could be significant. Reimbursing the additional costs to all affected users, along with possible penalties, could cost the company dearly. Additionally, the protracted litigation could tie up time, resources and management attention needed elsewhere in the company.

However, the class action lawsuit could have positive effects for consumers. If successful, they would receive a refund of the additional costs paid, which could lead to overall financial relief. Additionally, the lawsuit could serve as a signal to other companies to be transparent and respect consumer expectations when introducing new paid elements.