Amazon has been directed by a Hyderabad consumer commission to refund a Prime member’s annual fee of Rs 1,499 because advertisements were displayed on Prime Video while the member’s paid subscription was still active. The commission held that introducing advertisements during the subscription period and then asking the user to pay an additional Rs 699 to remove them amounted to a deficiency in service and an unfair trade practice. It also directed Amazon Seller Services Pvt Ltd to pay Rs 5,000 as compensation and Rs 3,000 towards litigation costs within 45 days, according to reports by Hyderabad Mail and The Times of India.
Amazon did not contest the complaint, and the order applies to only one subscriber. On June 17, 2025, Prime users across India faced the same issue when advertisements began appearing even for members who were partway through their annual subscriptions. Amazon offered ad-free viewing as an add-on for Rs 699 a year or Rs 129 a month. However, the commission has not issued any direction covering these other subscribers.
The District Consumer Disputes Redressal Commission-I in Hyderabad passed the order on October 1, 2026, in C.C. No. 303/2026. MediaNama has not been able to access the order.
What did the subscriber say happened?
Kondhoba Rajesh, the complainant, is an advocate who represented himself in the case. He filed the complaint on May 6, 2026, under Section 35 of the Consumer Protection Act, 2019.
- The purchase: Rajesh bought an annual Prime membership on May 11, 2025, for Rs 1,499. According to his complaint, the membership included ad-free Prime Video access on phones, televisions and laptops for one year.
- The change: On June 17, 2025, he started seeing advertisements and was asked to pay Rs 699 to restore ad-free viewing, he alleged.
- The response: He raised the issue with customer support and requested that Amazon either restore the service or refund the full membership fee. According to the complaint, Amazon declined both requests and offered only a pro-rata refund.
- The claim: Rajesh then approached the consumer commission, seeking ad-free viewing for the remainder of his subscription or a full refund, along with Rs 25,000 in compensation and Rs 10,000 towards litigation costs.
Why did Amazon not contest the case?
Amazon did not appear before the commission despite receiving notice. As a result, it lost the right to file a written reply, Hyderabad Mail reported. The commission then decided the complaint based on Rajesh’s evidence affidavit and seven exhibits. These included the subscription invoice, material promoting ad-free viewing, a screenshot showing the Rs 699 charge, email correspondence and viewing activity records.
The bench comprised president B. Uma Venkata Subba Lakshmi and members C. Lakshmi Prasanna and B. Raji Reddy. It noted that Amazon had introduced the change while the membership was active, rather than at renewal. The commission found that Amazon had not informed Rajesh at the time of purchase that it could withdraw ad-free viewing during the paid subscription period.
As reported by The Times of India, the commission held:
“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.”
Did Amazon inform members in advance?
When Amazon first announced advertisements for Prime Video in India in October 2024, it said:
“We will email Prime members several weeks before ads are introduced into Prime Video with information on how to sign up for the ad-free option if they would like.”
Amazon also emailed members on May 13, 2025, according to Exchange4Media. The email stated: “No action is required from you, and there is no change to the current price of your Prime membership.” MediaNama reported the rollout at the time.
According to the reported timeline, Rajesh bought his membership two days before Amazon sent the email. However, the reports do not specify whether the commission considered Amazon’s October 2024 announcement or its May 13, 2025, email. Since Amazon did not appear before the commission, it did not present arguments about whether either communication constituted sufficient notice.
What happens now?
Under Section 41 of the Consumer Protection Act, 2019, a party can appeal a District Commission’s order before the State Commission within 45 days, subject to the applicable conditions, including depositing 50% of the amount ordered to be paid. MediaNama could not confirm whether Amazon has appealed the order.
The 2023 dark patterns guidelines issued by the Central Consumer Protection Authority (CCPA) prohibit a practice known as a “subscription trap”. However, the definition covers subscriptions that are difficult to cancel and free trials that may require users to provide payment details. Changes to the benefits included in an existing paid subscription are not expressly covered by this definition.
The CCPA did, however, fine McAfee Rs 1 lakh in May over a renewal prompt that it found misleading on a subscription screen.
Questions we have sent
MediaNama has written to Amazon and the CCPA, and will update this story if they respond.
To Amazon:
- Whether Amazon will comply with the order or appeal it, and why it did not appear before the commission.
- Whether members partway through annual plans on June 17, 2025, were offered ad-free viewing until renewal, or a full refund on request, and how many asked for one.
- Where Amazon’s terms, at the point of purchase in May 2025, told members that Prime Video benefits could change during a paid membership.
To the CCPA:
- Whether it has received complaints about streaming services changing what paid plans include mid-subscription, and whether such changes fall within the 2023 dark patterns guidelines.
Also read:
- Limited Advertisements Coming to Amazon Prime Video in India: What’s Changing?
- Consumer protection authority fines PhysicsWallah and McAfee for dark patterns: what counts as consent now?
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