Amazon Sued in Australia for Forcing Ads on Prime Video Subscribers
Australia’s consumer watchdog has launched a lawsuit against Amazon, accusing the retail and streaming giant of using unfair contract clauses to inject commercials into Prime Video.
The Australian Competition and Consumer Commission (ACCC) claims that Amazon broke consumer protection laws by locking more than a million annual subscribers into unfair agreements between November 2023 and August 2025. According to the regulator, these agreements allowed Amazon to alter its streaming service negatively without giving customers a path to a refund or any other form of compensation.
Prime Video had previously been completely commercial-free since its launch, serving as a core perk of the broader Amazon Prime subscription package. However, Amazon shifted its strategy globally and brought commercials to Australian viewers in July 2024.
The change meant that users who had already shelled out AU$79 upfront for a full year of service were suddenly forced to watch commercials. To keep their streams ad-free, members had to pay an extra AU$2.99 per month, which bumped the total monthly price up to AU$12.99. The ACCC noted that more than 850,000 Australian users had already prepaid for their yearly memberships when the ads were rolled out.
In a formal filing, the watchdog elaborated on the specific contractual tactics allegedly used by the company. The ACCC said:
"Those contracts included five terms permitting [Amazon Australia] to unilaterally make materially adverse changes to its services (including, but not limited to, Prime Video) and the terms governing those services, without any contractual entitlement for subscribers to receive refunds or other meaningful redress,"
The regulator also alleged that the US-based parent entity, Amazon.com Services LLC, was directly involved in creating the disputed contracts. The watchdog is now pushing for fines, declarations, and financial compensation for affected consumers.
In response to the legal action, an Amazon Australia spokesperson stated that the company is "reviewing the case filed by the ACCC in detail." The representative added: "We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers"
This lawsuit adds to a growing list of regulatory headaches for the tech giant across the globe. In the United States, the Federal Trade Commission (FTC) has previously targeted Amazon for allegedly enrolling shoppers into Prime memberships without their explicit permission and creating a complicated process to stop them from canceling. Amazon also recently settled an FTC complaint involving online shopping fraud, while United Kingdom authorities have previously scrutinized the platform over deceptive product reviews and its marketplace listings.
Despite these legal issues, Amazon continues to see massive financial success. The company's stock recently jumped over 3% following immense shopper demand during its extended Prime Day event in the US, where online buyers spent upwards of $26.4 billion over a four-day stretch.
