Prime members in Germany have been overcharged since 2022 due to a price increase attributed to inflation. Monthly fees rose from 7.99 euros to 8.99 euros, and annual fees from 69 euros to 89.90 euros. A recent court ruling deemed this price hike unlawful, potentially allowing for refunds totaling hundreds of millions. Additionally, Prime Video introduced ad interruptions and reduced quality, prompting another class action lawsuit. Refunds have begun to be issued to affected customers.
Amazon Prime Price Increase: What You Need to Know
It’s now confirmed that Prime members have been overpaying since 2022. The Consumer Center NRW sheds light on this issue, revealing that millions of consumers in Germany were notified by Amazon in the summer of 2022 about an increase in their Prime membership fees. Amazon attributed this necessity to “general and significant cost changes due to inflation,” leading to a price hike effective September 15, 2022.
Impact of the Price Hike on Consumers
The subscription fees saw a substantial rise, both for monthly and annual plans. The monthly fee for Amazon Prime jumped from 7.99 euros to 8.99 euros, while the annual membership soared from 69 euros to 89.90 euros. This represents a 12.5 percent increase for those paying monthly and an alarming 30.3 percent rise for annual subscribers.
Recent developments indicate that the price increase clause of Amazon Prime has been deemed invalid. Wolfgang Schuldzinski, a board member of the Consumer Center NRW, stated, “The District Court of Düsseldorf shares our view and has declared the price adjustment clause ineffective.” This ruling indicates that the price hike is considered unlawful without explicit customer consent.
So, what does this mean for affected Prime customers who previously felt powerless about the price increase? Currently, the ruling is not legally binding, as Amazon has the option to appeal. However, if the decision holds, it could mean that annual subscribers have overpaid up to 62.70 euros, while monthly subscribers may have overpaid by up to 28.00 euros, according to the Consumer Center. This could lead to potential refunds for Amazon, amounting to hundreds of millions, given the vast number of Prime members. In order to ensure consumers receive their refunds, the Consumer Center NRW is prepared to initiate a remedial lawsuit against Amazon if the company does not voluntarily issue refunds.
For Prime customers interested in joining this lawsuit, the Consumer Center has set up a process where they won’t need to take action against Amazon themselves. Instead, they would automatically receive their refunds if the court rules in their favor. Affected customers can sign up for the newsletter on the Consumer Center NRW’s website, where they will be informed when the lawsuit registration opens.
Additional Issues: Advertising Interruptions
In addition to the price hike, there are further concerns regarding restrictions for Prime members, particularly with the introduction of advertising interruptions. Unlike traditional streaming services, Prime Video introduced additional ads on February 5, 2024, while also reducing the quality of image and sound. To regain the previous quality without ads, customers are required to pay an extra 2.99 euros on top of their existing fees. This change was communicated to customers via email in January 2024, implemented without the consent of the estimated 17 million Prime subscribers. The Consumer Center Saxony highlights that the only way to avoid this situation is by subscribing to an additional plan for another 2.99 euros per month.
The Consumer Center Saxony is taking action with a class action lawsuit against Amazon, aiming to recover part of the monthly fees for those affected. The legality of this advertising measure is under scrutiny, as user consent should have been obtained prior to implementation. As of May 23, 2024, the lawsuit registration is now open.
In a positive turn of events, some Amazon Prime customers have already begun to receive refunds.