Amazon has landed in legal trouble in Australia after the consumer watchdog filed a lawsuit against the company over changes being made to the Prime Video subscriptions. The case largely revolves around the company’s decision to introduce advertisements on Prime Video, and the users are required to pay an additional monthly fee to continue consuming content without watching any ads. So, despite being a subscriber, users were being expected to pay more to remove ads for an uninterrupted streaming experience.The lawsuit has been filed by the Australian Competition and Consumer Commission (ACCC) and argues that Amazon has used unfair contract terms to alter their existing paid subscription plans, leaving the users with a choice of accepting ads between their content flow or paying more money than they had originally signed up for.Why is Amazon being sued?According to the ACCC, Amazon Australia relied on the contract terms that allowed it to make changes to its current membership plan without providing meaningful alternatives or compensation to its subscribers.The regulatory body has alleged that after introducing advertisements in this scheme of things, Amazon required users to pay A$2.99 per month for an uninterrupted ad-free experience. This payment is over and above the subscription fees that the members have already paid for consuming the Prime Video content. The watchdog claims that these changes may violate Australian consumer law.What does the ACCC allege?The Australian regulatory body claims that:Amazon used unfair contract terms in Prime subscription agreements, resulting in them asking for an additional charge for the removal of adsSubscribers were subjected to a reduced service when ads were introducedCustomers had to pay an additional monthly fee to restore the original ad-free viewing experience, which they had initially after subscribingMore than one million Australian Prime subscribers may have been affected during the period under investigationThe ACCC is asking for financial penalties, consumer compensation where appropriate and court orders addressing the alleged unfair terms. The aim behind this allegation is the protection of the rights of the consumers and ensuring that they do not have to experience reduced services despite paying the full and originally decided amount.What is Amazon’s response to this?Amazon Australia has stated that it is reviewing the legal proceedings currently and noted that it has cooperated with the ACCC during the investigation process. However, the company has not admitted any wrongdoing and is expected to defend the allegations in the Federal Court proceedings.Why does this case matter?This case is important because streaming platforms across the world have increasingly started adopting ad-supported subscription models while asking for additional fees beyond the subscription fees to remove the ads. Companies, including Netflix, Disney+ and more, are also introducing similar strategies in different markets across the world. However, the current lawsuit in Australia is less about the trend or all the companies as a whole, but about whether companies can change the terms and conditions of an existing paid subscriber or not. Legal experts are saying that the outcome can influence how digital subscription services modify their contracts in future, especially in markets where there are strong protection laws for consumers.Will this affect Prime Video users in India?Currently, this lawsuit applies only to Australia, and its current scope does not include any other markets, including India. There is no legal indication in this regard. However, the outcome could affect the streaming services and subscription charges worldwide where similar consumer protection laws are being practised.Other FAQs that people want to know:Why is Amazon facing a lawsuit over Prime Video?Australia's consumer watchdog has alleged that Amazon’s alteration to the current Prime Video subscription terms and conditions relies on unfair contract terms and is against consumer rights.How much extra were users charged?The ACCC says Amazon charged A$2.99 per month for users who wanted to continue the streaming services without any ads.Is this lawsuit related to India?No. The current applicability of the lawsuit is limited only to Australia. However, the final verdict might affect the terms and conditions of subscription services across the world in the future.Has Amazon responded?Yes. Amazon has responded, and it says that it is reviewing the legal filings and has cooperated in the investigation process.end of article