Australia sues Amazon over Prime Video ads: Unfair contract terms alleged

ustralian Competition and Consumer Commission (ACCC) has filed a case in the Federal Court, claiming that Amazon breached consumer law by including unfair terms in its Prime subscription contracts. According to the ACCC, Amazon used these terms to bring ads onto Prime Video in 2024, impacting more than one million annual subscribers who had already paid their subscription fee.

As a result, these subscribers were faced with a choice: watch advertisements or pay an additional monthly fee for an ad-free experience. The ACCC is seeking penalties against Amazon and compensation for affected consumers in Australia.

Amazon’s US headquarters were reportedly involved in the decision to introduce advertisements on Prime Video in Australia. Amazon Australia has stated that they are reviewing the case filed by the ACCC and have cooperated with the regulator during its investigation.

Last year, Amazon agreed to pay significant penalties and refunds in the United States for similar issues related to Prime subscriptions. In the current scenario, Prime Video’s ad-supported service is available in several countries including Australia, Austria, Brazil, and the US.

Customers in these markets have the option to pay an additional fee for an ad-free viewing experience. The ACCC’s investigation was initiated following complaints from consumers after the introduction of advertisements on Prime Video in 2024.

Overall, Amazon is facing legal challenges in Australia over its Prime Video service, but the situation is still unfolding as the case progresses through the Federal Court. Stay tuned for updates on this story.