Amazon Prime

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Amazon secretly slowed deliveries, deceived anyone who complained, lawsuit says

In a statement to Ars, Amazon spokesperson Kelly Nantel said that claims that Amazon’s “business practices are somehow discriminatory or deceptive” are “categorically false.”

Nantel said that Amazon started using third-party services to deliver to these areas to “put the safety of delivery drivers first.”

“In the ZIP codes in question, there have been specific and targeted acts against drivers delivering Amazon packages,” Nantel said. “We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”

Nantel also pushed back on claims that Amazon concealed this choice, claiming that the company is “always transparent with customers during the shopping journey and checkout process about when, exactly, they can expect their orders to arrive.”

But that doesn’t really gel with Schwalb’s finding that even customers using Amazon’s support chat were allegedly misled. During one chat, a frustrated user pointing out discrepancies between DC ZIP codes asked if Amazon “is a waste of money in my zip code?” Instead of confirming that the ZIP code was excluded from in-house delivery services, the support team member seemingly unhelpfully suggested the user delete and re-add their address to their account.

“Amazon has doubled down on its deception by refusing to disclose the fact of the delivery exclusion, and instead has deceptively implied that slower speeds are simply due to other circumstances, rather than an affirmative decision by Amazon,” Schwalb’s complaint said.

Schwalb takes no issue with Amazon diverting delivery drivers from perceived high-crime areas but insists that Amazon owes its subscribers in those regions an explanation for delivery delays and perhaps even cheaper subscription prices. He has asked for an injunction on Amazon’s allegedly deceptive advertising urging users to pay for fast shipments they rarely, if ever, receive. He also wants Amazon to refund subscribers seemingly cheated out of full subscription benefits and has asked a jury to award civil damages to deter future unfair business practices. Amazon could owe millions in a loss, with each delivery to almost 50,000 users since mid-2022 considered a potential violation.

Nantel said that Amazon has offered to “work together” with Schwalb’s office “to reduce crime and improve safety in these areas” but did not suggest Amazon would be changing how it advertises Prime delivery in the US. Instead, the e-commerce giant plans to fight the claims and prove that “providing fast and accurate delivery times and prioritizing the safety of customers and delivery partners are not mutually exclusive,” Nantel said.

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You’ll be paying extra for ad-free Prime Video come January

might want to level up —

Subscribers will have to opt-in to a pricier ad-free plan.

screenshot of Prime Video homepage with logo to the left

Amazon Prime Video

Amazon confirmed today in an email to Prime members that it will begin showing ads alongside its streaming Prime Video content starting January 29, 2024. The price will remain the same, but subscribers who don’t wish to see any ads will have to pay an additional $2.99 per month on top of their monthly or yearly Amazon Prime subscription. The change was first reported back in September.

“Starting January 29, Prime Video movies and TV shows will include limited advertisements,” Amazon wrote in an email sent to Amazon Prime subscribers. “This will allow us to continue investing in compelling content and keep increasing that investment over a long period of time. We aim to have meaningfully fewer ads than linear TV and other streaming TV providers. No action is required from you, and there is no change to the current price of your Prime membership.”

Subscribers who want to avoid ads can sign up for the extra monthly fee at the Prime Video website.

Prime Video isn’t the only streaming platform looking to increase revenues via ad-supported tiers and price hikes in a challenging economic environment: both Disney+ and Netflix, among others, have hiked their prices in recent months. HBO Max, Peacock, and Paramount+ all introduced lower-priced ad-supported options, and Netflix launched an ad-supported tier last year for $6.99 per month.

Netflix did recently grant subscribers an ad-free episode for every three episodes watched, as well as downloadable content. However, this was apparently designed to help advertisers “[tap] into the viewing behavior of watching multiple episodes in a row,” per the November Netflix announcement.

Disney+ and the Disney-controlled Hulu increased prices starting in October. The ad-free tier of Disney+ rose from $11 to $14 a month, while ad-free Hulu increased from $14 to $18 a month. Both services are also offered together for $20 a month, and the ad-supported tiers maintained their current pricing; both strategies seem intended to drive viewers to either sign up for multiple services or drop down to an ad-supported tier. This is the second price hike for both services in the last calendar year.

Apple TV+ announced monthly price hikes for several online services in October, including its catchall Apple One subscription service in October. Apple TV+ jumped from $6.99 to $9.99 per month, while Apple Arcade went from $4.99 to $6.99 monthly. Apple News+ used to cost $9.99 per month, but now it’s $12.99. “Raising these prices helps Apple stay attractive to shareholders even amidst the tricky economic context—or at least it will if consumers agree to keep paying,” Ars Senior Editor Sam Axon wrote at the time. “Raising prices too much could drive customers away; Apple seems to be betting that that will not be the case this time.”

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