The Australian Competition and Consumer Commission (ACCC) has launched legal action against Amazon.com, alleging the company used abusive contract clauses to introduce advertisements into its Prime Video service. The regulator claims Amazon forced subscribers to pay an additional A$2.99 per month to maintain an ad-free experience, despite existing subscription agreements.
Why is the ACCC taking legal action against Amazon?
The ACCC alleges that Amazon maintained five abusive contract clauses within its Prime membership agreements between November 2023 and August 2025. According to the regulator, Amazon utilized these specific terms to justify the introduction of advertisements to the Prime Video streaming service in July 2024.
Gina Cass-Gottlieb, president of the ACCC, stated that the company’s actions left consumers with limited options. “Consumers who wanted to avoid ads had no other choice but to pay more to maintain the service for which they had already subscribed,” Cass-Gottlieb said in an official statement.
The ACCC’s investigation highlights a discrepancy between upfront costs and ongoing fees. Many users had already paid A$79 in advance for Prime services before the new advertising requirements were implemented.
How did the Prime Video changes affect Australian subscribers?
The core of the dispute involves how Amazon transitioned its streaming service to an ad-supported model. When Amazon introduced advertisements to Prime Video in July 2024, it required existing members to pay a monthly surcharge to keep their viewing experience uninterrupted.
According to the ACCC, subscribers were forced to pay an extra A$2.99 per month to avoid these ads. This requirement applied even to those who had already committed to the service through significant upfront payments, such as the A$79 annual fee.
What legal remedies is the ACCC seeking?
The ACCC is pursuing several avenues through the court system to address these alleged contract violations. While the regulator has not specified the exact amount or method of consumer restitution, the official filing includes requests for:
- Court declarations regarding the legality of the clauses
- Financial penalties against Amazon
- Redress and compensation for affected consumers
- Recovery of legal costs
Amazon has not immediately responded to requests for comment regarding the proceedings. The outcome of this case could set a precedent for how global streaming platforms modify subscription terms for existing customers.
Frequently Asked Questions
What is the main reason for the ACCC’s lawsuit?
The ACCC alleges Amazon used abusive contract clauses to force Prime Video users to pay extra for an ad-free experience.
How much more does it cost to avoid ads on Prime Video?
According to the ACCC, subscribers must pay an additional A$2.99 per month to maintain ad-free viewing.
When did Amazon introduce ads to Prime Video?
Amazon introduced advertisements to its Prime Video service in July 2024.
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