Amazon Prime Faces Consumer Lawsuits Across India Over Alleged Deceptive Subscription Practices

Amazon Prime Faces Consumer Scrutiny in India Over Alleged Deceptive Subscription Practices

Amazon Prime Under Fire for Alleged Deceptive Practices in India Amazon Prime, one of the most recognizable names in digital subscription services, is facing a new wave of controversy after adding advertisements to its Prime Video streaming service. The move has angered consumers who subscribed under the assumption that they were getting an ad-free experience and has prompted accusations of deceptive practices, challenging consumer rights, and the changing nature of digital subscriptions.

Consumer Outcry and Allegations of Deception

Amazon Prime Video has developed a reputation as a premium (mostly commercial-free) streaming experience, which is one of the key benefits of its overall Prime membership, paid annually by subscribers for faster shipping and other perks.

However, starting in June 2025, Amazon Prime Video began inserting “limited ads” into movies and TV shows for existing Indian members (a change not disclosed at the time of subscription), creating a dissonance with consumers who had paid their ₹1,499 per year for an ad-free experience that they now needed to pay more for by subscribing to an add-on tier at an additional cost of ₹699 annually or ₹129 per month.

Consumer Outcry and Allegations of Deception

Immediately following this policy shift, there was a flood of consumer frustration expressed across social media platforms and online forums in India with consumers voicing anger at Amazon for what they described as a breach of trust and betrayal, suggesting that it had engaged in bait-and-switch tactics by changing the terms of a service mid-subscription without adequate compensation or clear opt-out. Subscribers felt tricked into paying more for a benefit that was promised to be included, even if not explicitly stated, in their existing Prime membership, leading many to reevaluate whether they should continue subscribing at all.

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Legal Ramifications: A Global and Indian Perspective

The introduction of ads has not only angered consumers but also raised serious legal issues. There is already one potential class-action suit pending against Amazon in California federal court over breach of contract, false advertising, and violation of consumer protection laws, asserting that Amazon illegally profited by marketing Prime Video as “commercial-free” for years before transitioning its subscribers to an ad-supported default and seeking large damages and injunctive relief.

While no specific, confirmed class-action lawsuit in India directly regarding the introduction of ads on Prime Video was identified through public records at the time of this analysis, there are many reasons why such a suit is likely: The Consumer Protection Act 2019 (CPA 2019), which governs unfair trade practices and misleading advertisements in India, makes it illegal to adopt “deceptive methods” to promote the sale, use, or supply of any goods or services; Prime Video’s shift to ads without clear notice beforehand was an abrupt change from what most consumers believed they had purchased (e.g., ad-free video); and the CCPA has been looking into dark patterns on digital platforms and sent notices to Amazon India about deceptive enrollment and cancellation processes for Prime memberships in general.

The addition of ads, reducing a previously ad-free service to something that now includes ads without clear prior disclosure or an additional charge to remove them, fits squarely within the concerns about transparency and fair dealing that the CCPA has been addressing.

Industry Parallels and the Road Ahead

While Amazon has been the first major player to add ads on Prime Video in India, it is not an isolated case; many streaming platforms around the world (and several big players in India, like Disney+, Hotstar, and JioCinema) have long had a tiered pricing model with some ad-supported options along with an ad-free option.

But what triggers consumer anger and possibly legal action is when services are launched with an ad-free proposition, only to introduce ads later without clear communication or without adding enough additional value for the existing price point. This scenario creates a dilemma for Amazon: It needs more revenue in a competitive OTT market to continue investing in content while not alienating its subscriber base.

Consumer anger and legal challenges (either individually or as class actions) under strong consumer protection laws are likely in the immediate future, and how Amazon responds to that mounting pressure by changing strategy or providing better options for existing ad-burdened subscribers will go a long way toward determining its standing in the growing Indian digital entertainment market.