In brief
The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Amazon, alleging that the company introduced advertising into Prime Video under terms that unfairly compelled subscribers to accept ad‑supported services or pay higher fees. Amazon’s Prime Video, once entirely free of ads, saw a new tier in 2024 that raised its price to AUD 12.99 for a monthly fee if users wished to avoid ads. The ACCC claims that from November 2023 to August 2025, Amazon used five contract clauses that allowed the company to change the service unilaterally without refunds or satisfactory redress. Amazon has said it is reviewing the case. The case follows prior U.S. and U.K. investigations of Amazon’s consumer practices, including FTC action for Prime enrollment and cancellation difficulties and UK probes into product reviews and marketplace listings.
Australia’s Competition and Consumer Commission (ACCC) has sued Amazon for allegedly using unfair contract terms that forced over a million Prime Video subscribers to accept ads or pay extra fees. The lawsuit claims that from November 2023 to August 2025 Amazon added five clause‑based provisions that allowed the company to unilaterally alter the service, including the placement of advertising, without providing a refund or meaningful redress.
The ACCC’s statement says many users, who had prepaid their Prime subscription without a clear option for ad‑free viewing, were left receiving a materially adverse service unless they paid an additional fee. The new fee increased the Prime subscription from AUD 9.99 to AUD 12.99 per month.
Amazon replied that it is “reviewing the case filed by the ACCC” and says it has cooperated throughout the investigation. The company stresses that its focus remains on delivering “the best experience for Australian customers”.
Prime Video was launched in Australia in 2018, and for more than a decade it was a commercial‑free streaming service bundled with Amazon’s Prime membership. Beginning early in 2024, Amazon rolled out a global ad‑support option, and Australian subscribers were notified that an ad‑free experience would require an extra monthly charge. The ACCC notes that at that time, over 850,000 Australians had already paid for a full year of Prime, only to receive ad‑supported content for the remainder of their prepaid period.
Consumer‑rights watchdogs in other jurisdictions have also scrutinised Amazon’s subscription and marketplace practices. In the United States, the Federal Trade Commission sued Amazon for enrolling customers in Prime without consent and for making cancellations disproportionately difficult. The FTC recently imposed a $225 million fine on Amazon for alleged violations of the Fair Credit Reporting Act. In the United Kingdom, the government has investigated Amazon’s product listing methods and the prevalence of fake reviews.
The ACCC’s lawsuit comes at a time when global regulators are tightening scrutiny over digital platforms and their user‑experience practices. Whether Amazon’s changes to Prime Video were truly unfair, and what the outcome of the legal action will mean for Australian consumers and other markets, remains to be seen.
