The Australian Competition and Consumer Commission (ACCC) filed a court case against Amazon's Australian unit. The ACCC alleges that Amazon Australia included unfair terms in Prime subscription contracts between November 2023 and August 2025. The commission alleges that Amazon Australia relied on these contract terms to introduce advertising to Prime Video in July 2024. The ACCC stated it investigated Amazon Australia's contracts after receiving consumer reports following the introduction of ads to Prime Video in July 2024.

According to the ACCC, the contracts required more than one million annual Prime subscribers in Australia to accept advertising or pay an additional AU$2.99 per month for an ad-free option. The ACCC states that subscribers had no entitlement to a refund if they chose to cancel their subscription after the introduction of ads.

"We allege that Amazon AU included multiple unfair terms in its contracts with Australian annual Prime subscribers, and it then relied on some of these terms to bring ads onto Amazon Prime Video," said Gina Cass-Gottlieb, chair of the ACCC. The ACCC is seeking consumer redress, penalties, costs, declarations, and other orders from the court.

An Amazon Australia spokesperson said, "We are reviewing the case filed by the ACCC in detail." The spokesperson added, "We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers."

Why It Matters

This court action by the ACCC addresses the contractual conditions under which a service change was implemented for more than one million consumers in Australia. The case could establish legal precedents regarding the fairness of contract terms when digital subscription services introduce new features like advertising that alter the original service offering.