In brief
Australia’s Competition and Consumer Commission (ACCC) has filed a lawsuit against Amazon, accusing the retailer of breaking consumer‑protection law by imposing unfair contract terms on more than a million Prime Video subscribers. Starting in November 2023, Amazon added advertising to Prime Video and required users to pay an extra fee to keep the service ad‑free, destroying any right to cancel. Amazon has responded that it is reviewing the case and has cooperated with the investigation. The lawsuit follows a history of regulatory scrutiny worldwide, including actions by the U.S. FTC and UK regulators.
Australia’s consumer watchdog says Amazon introduced ads in Prime Video by using contract terms that were against the law.
The Australian Competition and Consumer Commission (ACCC) says Amazon broke consumer‑protection law with unfair contracts for more than a million annual subscribers between November 2023 and August 2025.
ACCC chair Gina Cass‑Gottlieb said the contracts left subscribers who wanted an ad‑free experience with no choice but to pay extra.
An Amazon spokesperson told the BBC the company is reviewing the case in detail and that it had cooperated with the investigation.
Prime Video was first offered in Australia in 2018 as a free part of Amazon Prime. In early 2024, Amazon began advertising in the service worldwide.
Australian users were informed that they would need to pay an additional $12.99 per month to keep the service ad‑free.
At that time, the ACCC noted that over 850,000 Australians had already prepaid for a year’s Prime service.
The ACCC claims Amazon relied on five unfair contract terms that allowed Amazon to unilaterally change services, with no entitlement to refunds or redress.
Amazon has faced similar scrutiny before, including U.S. FTC action over automatic Prime enrollments and difficulty canceling subscriptions.
In June 2026, Amazon paid an FTC fine of $225 million over alleged violations of the Fair Credit Reporting Act.
In the UK, regulators have investigated Amazon’s listing practices and the creation of fake product reviews.
