Australia Takes Amazon to Court Over Unfair Ad‑Based Prime Video Contracts

Sun Sep 06 2026 05:03:24 GMT+0000 (Coordinated Universal Time)

The ACCC claims Amazon imposed costly, unilateral changes to Prime Video, forcing over a million Australian customers to pay extra for ad‑free streaming.

The Australian Competition and Consumer Commission has sued Amazon, arguing that the company broke consumer protection law by enforcing unfair terms in Prime Video contracts between November 2023 and August 2025. Subscribers who had pre‑paid for ad‑free service were offered a lower‑tier, ad‑supported feed unless they paid an additional monthly fee of A$12.99. The court case follows prior US and UK actions against Amazon for similar deceptive practices. Amazon has responded that it is reviewing the complaint and remains committed to compliance.

Australia Takes Amazon to Court Over Unfair Ad‑Based Prime Video Contracts

The Australian Competition and Consumer Commission (ACCC) has formally sued Amazon, claiming the tech giant violated consumer protection laws by imposing allegedly unfair contractual terms on Prime Video subscribers between November 2023 and August 2025.

Unforced Ad‑Free Upgrades

Amazon introduced adverts into its Prime Video streaming service globally in early 2024. In Australia, the company offered users an option to keep the service ad‑free by paying an additional fee of A$12.99 per month. For many, the ACCC notes that this meant their prepaid annual subscriptions began to deliver an ad‑supported version of Prime Video unless the extra charge was paid.

Accusations of Unfair Terms

According to the ACCC filing, Amazon relied on five unfair contractual terms that allowed the company to unilaterally alter the service or its terms without offering refunds or meaningful redress to subscribers. The commission argues that over one million customers signed contracts that were subject to these terms.

The ACCC’s chair, Gina Cass‑Gottlieb, stated that “consumers who wanted to avoid ads were left with no choice but to pay more to maintain the service they initially signed up for.”

Amazon’s Response

A spokesperson for Amazon acknowledged the complaint, saying the company is “reviewing the case filed by the ACCC in detail” and that it has cooperated throughout the investigation. Amazon added it remains focused on providing the best experience for Australian customers.

Global Regulatory Context

This lawsuit follows a series of regulatory actions against Amazon worldwide. In the United States, the Federal Trade Commission (FTC) has sued the company over automatic enrolment in Amazon Prime and difficulties canceling subscriptions. The FTC also fined Amazon $225 million for violations related to online shopping fraud. In the UK, government investigations have focused on Amazon’s listing practices and the proliferation of fake product reviews.

As the case unfolds, it remains to be seen how Amazon and the ACCC will resolve the allegations, and whether further regulatory scrutiny will be imposed on the streaming services industry.