Australia’s consumer watchdog has launched legal action against Amazon, alleging the company used unfair contract terms when it introduced advertising to its Prime Video streaming service. The watchdog claims that more than one million subscribers were affected after Amazon added advertisements to a service that had previously been commercial-free, unless customers paid an additional monthly fee for an ad-free option. According to the regulator, many annual subscribers who had already paid in advance received a reduced service during the remainder of their subscription without compensation or meaningful redress. The case also alleges that Amazon’s contracts allowed the company to make significant changes to its services without giving customers adequate contractual protections. Amazon says it is reviewing the legal action and has cooperated with the investigation. The case is the latest in a series of regulatory challenges facing the company over its treatment of consumers in several countries.