Amazon sued by Australian consumer watchdog over Prime Video ads
Beyond annual service fees, subscribers had to pay extra monthly fees to avoid ads, the authority says
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[SYDNEY] Amazon has been sued by Australia’s consumer watchdog for introducing advertising to its Prime Video streaming service and then forcing existing subscribers to pay more to avoid the ads.
The Australian Competition & Consumer Commission (ACCC) said Tuesday (Jun 30) it has commenced proceedings in the Federal Court alleging Amazon breached consumer law by including unfair contract terms in its Prime subscription contracts. It also alleges Amazon later relied on those terms to introduce advertising to Prime Video in 2024.
More than one million subscribers, who already paid an annual upfront fee of A$79 (US$54) for the service, then had no choice but to pay an additional A$2.99 a month to avoid the ads, the ACCC said.
The regulator also claims Amazon’s US headquarters was “knowingly concerned” about the Australian unit’s conduct in drafting the contracts and introducing advertising.
The ACCC is seeking penalties against Amazon and consumer redress.
In 2025, Amazon agreed to pay US$2.5 billion in penalties and refunds in the US and change its process for how to cancel its Prime subscription to settle a lawsuit by the Federal Trade Commission. BLOOMBERG
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