Australia's consumer watchdog has filed legal action against Amazon for introducing advertisements to Prime Video and requiring existing subscribers to pay extra to remove them.
The Australian Competition and Consumer Commission (ACCC) alleges that Amazon breached consumer protection laws by adding ads to the streaming service without adequately notifying subscribers and then charging additional fees to maintain ad-free viewing.
Prime Video introduced an ad-supported tier globally in late 2022, with existing premium subscribers initially grandfathered in. Amazon later began transitioning these subscribers to the cheaper ad-supported version or requiring payment for ad-free access.
The ACCC contends the company failed to provide clear information about the changes and treated customers unfairly. The case challenges whether existing subscribers received proper notice and had genuine choice regarding the service modifications.
This marks a significant regulatory challenge to Amazon's streaming strategy in a major market. The outcome could influence how streaming platforms manage tier transitions and advertising implementations across jurisdictions.
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