NEW DELHI: A district consumer commission in Telangana has held Amazon guilty of deficiency in service and unfair trade practice after it introduced advertisements on Prime Video during a customer’s paid annual membership and demanded an additional Rs 699 to continue ad-free viewing.The District Consumer Disputes Redressal Commission-I, Hyderabad, directed the platform to refund the full subscription amount of Rs 1,499, pay Rs 5,000 as compensation and Rs 3,000 towards litigation costs, in its order dated October 1, 2026.Amazon Prime Video ad-free subscription disputeAccording to the commission order, the complainant, Kondhoba Rajesh, an advocate appearing in person, purchased an Amazon Prime annual membership on May 11, 2025, for Rs 1,499. The membership included ad-free viewing of Prime Video content on mobile phones, televisions and laptops for one year.The complainant alleged that he received uninterrupted, advertisement-free streaming initially, but advertisements were introduced on June 17, 2025, while his annual subscription was still active. He alleged that the platform demanded an additional Rs 699 to continue ad-free viewing, changing a feature included in his paid membership into a separately chargeable service.He approached customer support and requested restoration of the original ad-free service or a refund of the full subscription amount. However, he alleged that the platform refused both requests and offered only a proportionate refund.The complainant argued that ad-free viewing had been represented as a feature of Prime membership when he purchased the subscription and could not be withdrawn midway through the paid period without prior disclosure or consent. He approached the commission seeking restoration of ad-free viewing for the remaining subscription period or a refund of Rs 1,499, along with Rs 25,000 as compensation for mental agony and harassment and Rs 10,000 towards litigation costs.The platform did not appear before the commission or file its written reply. Its right to file the reply was forfeited. The complainant submitted an evidence affidavit and documents in support of his case, along with written arguments. The commission proceeded to decide the complaint on the material available on record.Commission’s finding on Prime Video advertisementsThe bench comprising president B Uma Venkata Subba Lakshmi and members C Lakshmi Prasanna and B Raji Reddy found that the platform had altered a feature of the paid annual membership during the subscription period and demanded additional payment to continue ad-free viewing.The commission noted that the complainant had purchased the annual membership for Rs 1,499 and that the documents showed the subscription included ad-free viewing of Prime Video content for one year. It also considered the evidence that advertisements were introduced on June 17, 2025, and that an additional Rs 699 was demanded for the ad-free option.The bench noted that the change had been made while the complainant’s annual membership was still active and not at the time of renewal or after the subscription had expired.The commission observed that the platform had not appeared to establish that the complainant was specifically informed at the time of purchase that ad-free viewing could be withdrawn during the paid subscription period and that an additional payment would be required to retain it.It noted that the evidence produced by the complainant had remained unchallenged and unrebutted because the platform did not appear before it.“The unilateral introduction of advertisements during the assured ad-free period of paid subscription and demanding additional amount of Rs.699/- for continuation of ad-free facility amounts to deficiency in service and unfair trade practice,” the commission said.The commission held that introducing advertisements during the paid subscription period and demanding additional payment to continue ad-free viewing amounted to deficiency in service and unfair trade practice. It therefore partly allowed the complaint.What did the commission order?The commission, in its October 1, 2026, order, partly allowed the complaint and directed the platform to:
- Refund the full subscription amount of Rs 1,499.
- Pay Rs 5,000 as compensation.
- Pay Rs 3,000 towards litigation costs.
- Comply with the order within 45 days.
The total amount payable under the order is Rs 9,499, including the subscription refund, compensation and litigation costs.
