Amazon sued over Prime Video price hike — what it means for you

Amazon Prime Video logo on a phone being held by someone
(Image credit: Kicking Studio/Shutterstock)

Prime Video made a lot of news when it announced that it was bringing ads to the streaming service. What had once been a nice benefit of having an Amazon Prime membership now had some strings attached.

The shift to ad-supported streaming started rolling out on January 29 in the U.S. and while most people are either paying the extra $2.99 a month to skip ads or just suffering through ads in silence, not everyone is going down without a fight. 

The Indianapolis Star reports that a class-action lawsuit has been filed in the state of Washington by Wilbert Napoleon of Eastvale, California against Amazon (which is based in Washington). The lawsuit is seeking damages of $5+ million for the addition of ads to the streaming service, and the legal reasoning behind the suit is intriguing. Mr. Napoleon is contending that Amazon has pulled out the rug from under customers who "purchased the yearly, ad-free subscription, and who are now mid-way through their subscription."

The logic here is that if you signed up for an Amazon Prime membership for an entire year — which many do since it saves you over $40 — then essentially Amazon changed the terms of your agreement with the company part way through the term, violating the terms of membership. 

You can read the full details of the lawsuit here, but basically, it comes down to false advertisement. Amazon offered "ad-free streaming of movies and TV shows," people signed up for that reason (among others), and then Amazon did not deliver an ad-free experience. While I'm sure there's language buried in the terms and conditions of service that say Amazon can do this, the argument does seem, from my perspective, a pretty compelling one.

Prime Video lawsuit — what it means for you

At the moment, there's nothing you need to do related to this lawsuit. The class action lawsuit is filed on behalf of all Prime Video customers affected throughout the U.S.

However, it is possible that you can have a Prime Video membership or Amazon Prime membership and not fall into the class. The legal argument here seems based on those who have year-long Amazon Prime memberships. So if you pay for your Amazon Prime membership monthly — or only have Prime Video, which is only offered as a standalone service in a monthly subscription — you might not be eligible for compensation.

Time will tell if this argument is successful in court, and if it does we'll be sure to report on it then. For now, this is a waiting game. But if you want to cancel Prime Video or cancel Amazon Prime, we've got you covered.

More from Tom's Guide

Malcolm McMillan
Streaming Editor

Malcolm McMillan is a Streaming Editor for Tom's Guide, covering all the latest in streaming TV shows and movies. That means news, analysis, recommendations, reviews and more for just about anything you can watch, including sports! If it can be seen on a screen, he can write about it.

Before writing for Tom's Guide, Malcolm worked as a fantasy football analyst writing for several sites and also had a brief stint working for Microsoft selling laptops, Xbox products and even the ill-fated Windows phone. He is passionate about video games and sports, though both cause him to yell at the TV frequently. He proudly sports many tattoos, including an Arsenal tattoo, in honor of the team that causes him to yell at the TV the most.

Read more
The Prime Video logo is on a TV next to an Amazon smart speaker and a plant
How to get Prime Video for free
Hulu app on a mobile phone
Hulu is adding ads to its 'ad-free' plans — here's why
Computer with logo: Netflix , HBO MAX, APPLE TV PLUS, NETFLIX, PRIME VIDEO are online video streaming services
What streaming costs in 2025: The price of Netflix, Disney Plus, Max and more
Max and Starz bundle
Prime Video just added Max and Starz streaming bundle — what it costs and how to get it
Prime Video app on a phone; Disney Plus app on a phone
I would definitely cancel Prime Video and Disney Plus this month — here's why
What is Amazon Prime
What is Amazon Prime? Everything you need to know
Latest in Prime Video
Fallout TV show
‘Fallout’ season 2 will feature the iconic Deathclaws — but there’s something I’m looking forward to even more
Titus Welliver in Bosch Legacy season 3
‘Bosch: Legacy’ season 3 preview: 5 things to know before the final season on Prime Video
A first look at Amazon's Fallout TV series coming to Prime Video
‘Fallout’ season 3 plans are reportedly being made — while season 2 is still filming
Kat Graham and Meagan Tandy in Tyler Perry's "Duplicity" on Prime Video
Prime Video’s latest hit thriller proves that bad movies can still win — and I’m sick of it
(L-R) Carey Mulligan as Cassandra and Bo Burnham as Ryan in "Promising Young Woman"
I haven’t stopped thinking about this thriller for 5 years — and it’s steaming for free on Prime Video right now
Glen Powell and Daisy Edgar-Jones sit on the hood of a truck in "Twisters"
Prime Video top 10 movies — here's the 3 worth watching now
Latest in News
COLUMBUS, OHIO - JANUARY 26: Amber Glenn skates in the Women's Free Skate during the U.S. Figure Skating Championships at Nationwide Arena on January 26, 2024 in Columbus, Ohio. (Photo by Matthew Stockman/Getty Images)
Watch World Figure Skating Championships 2025 online – live stream, schedule, what TV channel is it on?
Mark Duplass and Ellen Pompeo in "Good American Family" on Hulu
Hulu top 10 shows — here's the 3 you need to stream right now
Ensemble cast members of Netflix's "The Residence" cast peak around a doorway
Netflix top 10 shows — here's the 3 worth watching right now
AI Mode of google search
Google’s making it easier to start new AI Mode searches — here’s how
Gemini logo on smartphone
Google Gemini Gems now available to all users without a subscription
DeepSeek login in page displayed on smartphone
DeepSeek R1 just got even smarter with a new upgrade — here's what's changed