Australia sues Amazon unit over alleged breach via Prime Video ads
The regulator alleges five unfair terms let Amazon add ads to Prime Video and charge subscribers A$2.99 more a month to stay ad-free.
- On Tuesday, the Australian Competition and Consumer Commission filed a lawsuit against Amazon Australia in Federal Court, alleging the company used unfair contract terms to unilaterally add advertising to its Prime Video platform.
- The ACCC alleges Amazon Australia used five unfair contract terms against over 1 million annual subscribers between November 2023 and August 2025, forcing changes on customers who had already paid $79 upfront for ad-free service.
- After July 2024, subscribers seeking to maintain ad-free streaming faced an additional $2.99 monthly charge, with ACCC Chair Gina Cass-Gottlieb stating consumers were "left with no choice but to pay more to maintain the service."
- The ACCC claims Amazon US helped draft the contracts and made the global decision to introduce advertising, prompting the regulator to seek penalties, consumer redress, and other court orders against the company.
- Amazon Australia stated it is "reviewing the case filed by the ACCC in detail" and cooperated during the investigation, while the regulator urged all subscription businesses to ensure their contracts comply with Australian Consumer Law.
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Australian authorities have filed a lawsuit against Amazon, alleging that it engaged in unfair contracts with more than one million subscribers, forcing them to pay extra to avoid advertisements that were not previously available.
The Australian Competition and Consumer Commission (ACCC) is suing Amazon over the way the company added advertisements to its streaming service Prime Video. Customers who already had an annual subscription were required to pay extra to continue watching movies and series without ads.
Australia's consumer protection agency is suing Amazon.com, alleging that the American retailer used abusive contractual clauses to introduce advertising to more than 850,000 local customers of its streaming service. Exclusive subject for subscribers. For full access, access the link to the article and register.
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