Australia's competition watchdog, the Australian Competition and Consumer Commission (ACCC), has filed a lawsuit against Amazon's Australian unit, alleging unfair contract terms in Prime Video subscriptions. The ACCC claims that between November 2023 and August 2025, Amazon imposed unilateral changes on more than one million annual Prime subscribers without offering refunds or meaningful compensation, including introducing ads on Prime Video and charging extra fees to remove them.
The ACCC's Federal Court proceedings target Amazon Commercial Services Pty Ltd and Amazon.com Services LLC. The regulator alleges that Amazon's standard-form contracts allowed the company to modify Prime services and contract terms during prepaid annual memberships without subscribers' consent. Specifically, when Amazon introduced ads on Prime Video in Australia on July 2, 2024, it required subscribers to pay an additional A$2.99 monthly to watch ad-free, despite already paying A$79 upfront for an annual subscription.
This case highlights growing scrutiny of subscription service terms in Australia, where regulators are increasingly challenging companies that alter service conditions mid-subscription without adequate compensation. The ACCC's action follows concerns that Amazon's contracts deprived customers of pro rata refunds or other redress when service value diminished. The lawsuit aligns with broader regulatory efforts to protect consumers from unfair contract terms in digital services.
The ACCC's court filing and press release detail the allegations and legal basis for the case. The Federal Court proceedings mark a significant step in Australia's enforcement of consumer protections in subscription services, with over one million affected subscribers referenced in the complaint.