Lawsuit against Amazon: Financial expert reveals violation of consumer rights

Lawsuit against Amazon: Financial expert reveals violation of consumer rights

According to a report by www.zeit.de, the Federal Association of Consumer Organizations (vzbv) has announced a lawsuit against Amazon because the company wants to show advertising on the Prime Video streaming service in the future. Amazon has presented its customers with “a fait accompli,” vzbv boss Ramona Pop told the Handelsblatt. The change was announced too quickly and was introduced without the explicit consent of the customers. The vzbv initially warned the German Amazon subsidiary for “disregarding consumer rights,” said Pop. The lawsuit is expected to follow in the coming weeks.

Consumer advocates see the placement of advertising as a significant change to the contract and demand that users' consent be obtained. Furthermore, from their point of view, this is a “hidden price increase” because in the future the customer will have to pay almost three euros more for the offer that they had previously received. Amazon has announced that it will begin showing “limited advertising” in films and series starting next week. If you don't want to see advertising, you should pay 2.99 euros more per month. vzbv boss Ramona Pop demands that Prime users “continue to be entitled to the ad-free option for the previously contractually agreed amount”.

Amazon has denied the allegations and emphasized that all legal obligations were met and that customers were informed transparently and in accordance with legal regulations by email, including the price for the ad-free option.

The introduction of advertising to Prime Video could have far-reaching implications for the subscriber market. It is possible that some users may cancel their Amazon Prime Video membership due to advertising and the additional cost of an ad-free option. This could lead to a decline in subscription fee revenue for Amazon. On the other hand, introducing advertising could also generate additional revenue, which could have a positive effect on the company's revenue.

Overall, the planned introduction of advertising in Prime Video can influence Amazon's business model in the streaming sector and lead to changes in user behavior.