ACCC sues Amazon over alleged unfair conduct for introducing Prime streaming service ads

The Australian Competition and Consumer Commission (ACCC) claims Amazon had more than one million Australian annual subscribers on Prime contracts with five unfair terms which allowed unilateral changes between November 2023 and August 2025.

The lawsuit alleges one of those terms was relied on when it introduced ads to Prime in July 2024 which required subscribers to pay an additional $2.99 per month to remain ad-free. ACCC Chair Gina Cass-Gottlieb said consumers were therefore “left with no choice but to pay more”.

The ACCC claimed Amazon’s changes included being able to make adverse changes to its services without “any contractual entitlement to a pro rata refund or other meaningful redress,” which was a significant power imbalance. The consumer watchdog also alleged that Amazon US helped to draft the contracts and that it was Amazon US that made the decision to introduce advertising to Prime Video globally.

In a statement, an Amazon Australia spokesperson said it was reviewing the case. “We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers.”