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Amazon is facing fresh legal trouble in Australia after the competition watchdog dragged the company to the Federal Court over changes made to Prime Video. The case revolves around advertisements that were introduced for existing subscribers.
The regulator alleged that Amazon began showing ads on Prime Video without properly informing customers that the service they had originally paid for would change. Users who wanted an ad free experience had to pay an extra fee.
According to the watchdog, many subscribers were automatically shifted to the ad supported version unless they agreed to pay more. It claims this could have misled customers about the nature of their subscription.
Amazon has defended its decision saying customers were informed about the changes through emails and app notifications before the new plan came into effect. The company is expected to contest the allegations in court.
The case has now become a major test for digital subscription services. If the court rules against Amazon, it could force streaming platforms to be more transparent whenever they change paid plans or introduce new charges.
Tags Prime video ads
