Amazon Facing Legal Action in Australia
Australia’s Competition and Consumer Commission (ACCC) has sued Amazon, alleging the tech giant introduced advertising on Prime Video under terms that are unfair to consumers.
According to the ACCC, Amazon breached consumer protection law by offering a series of five unfair contract provisions to over one million subscribers between 1 November 2023 and 18 August 2025.
Chair Gina Cass‑Gottlieb said: Consumers who wanted to avoid ads were left with no choice but to pay more to maintain the service they'd initially signed up for.
A spokesperson for Amazon replied that the company is reviewing the case filed by the ACCC in detail and that it has cooperated throughout the investigation, maintaining a focus on delivering a quality experience for Australian customers.
Prime Video, which had been a commercial‑free component of Amazon’s broader Prime subscription since 2018, began rolling out advertising globally in early 2024. When the ads were introduced in Australia, Amazon informed subscribers that an additional monthly fee of 12.99 Australian dollars was required to keep the service ad‑free.
At that time, the ACCC noted that over 850,000 Australians had already prepaid a year’s worth of Prime service. Those subscribers were then provided a reduced, ad‑supported Prime Video experience unless they paid the extra fee. See the filing for details.
The ACCC claims Amazon relied on five unfair terms that allowed Amazon Australia to unilaterally make materially adverse changes to its services – including Prime Video – and its governing terms, without providing subscribers a contractual right to refunds or other meaningful redress.
Amazon’s conduct has attracted regulatory scrutiny elsewhere. In the United States, the Federal Trade Commission (FTC) has pursued Amazon over alleged non‑consensual enrollment into Prime and difficulties in canceling subscriptions. The FTC recently imposed a 225‑million‑dollar fine to resolve claims that Amazon caused a “Kafkaesque ordeal” for victims of online shopping fraud. In the United Kingdom, the government has investigated Amazon’s selling practices and the proliferation of fake product reviews.
The Australian suit adds to a growing list of investigations targeting Amazon’s business models worldwide, underscoring the tension between corporate growth strategies and consumer protection legislation.
