Amazon Prime Video Ordered To Pay Compensation Over Ads During Paid Subscription

Amazon Prime offers subscribers access to benefits, which includes video streaming through Prime Video. However, a consumer dispute before the District Consumer Disputes Redressal Commission-I, Hyderabad, has resulted in an order directing Amazon Seller Services to refund an annual membership fee of Rs 1,499 and pay compensation after advertisements were introduced during a consumer’s existing paid subscription.

What Happened

The complainant, Kondhoba Rajesh, a 46-year-old advocate from Hyderabad said he purchased an annual Amazon Prime membership on May 11, 2025 for Rs 1,499. According to the order dated October 1, 2026, the membership included ad-free viewing of Prime Video content for one year on mobile, TV and laptop.

He said Amazon introduced ads on Prime Video on June 17, 2025, even though his annual membership was still valid. He was then asked to pay an additional Rs 699 to continue watching content without ads.

Rajesh argued that ad-free viewing was a key feature of the membership he had paid for. He also said customer support neither restored the original service nor offered a full refund, instead proposing a refund for the unused portion of his subscription. 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 in compensation and Rs 10,000 towards litigation costs.

Amazon Seller Services did not appear before the commission or file its written version. The commission recorded that the company’s right to file the written version was forfeited.

What Did The Commission Observe

The commission noted that the complainant had paid for an annual membership that included ad-free viewing and that advertisements were introduced while the subscription was still active. It also observed that Amazon had not produced evidence showing that the consumer was specifically informed at the time of purchase that the ad-free feature could be withdrawn during the subscription period and that an additional Rs 699 would be required to retain it.

The commission said in its order: “The material evidence placed before us remained unchallenged and unrebutted due to conscious non-appearance of the opposite party. In the absence of the opposite party, the contents of the complaint and evidence affidavit of the complainant are deemed to be proved.”

It further said, “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.”

What Did The Commission Order

The commission partly allowed the complaint and directed Amazon Seller Services to refund the full annual subscription amount of Rs 1,499, pay Rs 5,000 as compensation and another Rs 3,000 towards litigation costs. The commission ordered Amazon to pay Rs 9,499 in total and comply with the order within 45 days.