Australia Challenges Amazon Over Unfair Prime Video Contract Terms

The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Amazon, arguing that the tech giant introduced unfair contract terms that forced Prime Video users to pay more or accept ads. The complaints centre on a period between November 2023 and August 2025, during which Amazon linked its Prime Video service to an ad‑supported tier behind a higher monthly fee.

According to the ACCC, more than 850,000 Australians had already prepaid for a full year of Prime service when Amazon rolled out advertising worldwide. The company told subscribers that the ad‑free option would now cost 12.99 Australian dollars a month, a change that the ACCC says leaves users with no choice if they don’t want ads.

The investigation points to five specific contract clauses that allow Amazon Australia to make material changes to its services without offering refunds or meaningful redress. The ACCC says those clauses breach consumer protection law, making the agreements essentially “unfair.”

Amazon responded that it is “reviewing the case filed by the ACCC in detail” and that it has been cooperating throughout the investigation. The company added that it remains focused on providing a good experience for Australian customers.

This action follows similar regulatory scrutiny in the United States, where the Federal Trade Commission (FTC) has sued Amazon over enrolment and cancellation issues, and the United Kingdom, where the government has investigated Amazon’s sales listings and fake product reviews.

The accc lawsuit represents a growing global push for transparency and fairness in how large tech companies enforce contracts with consumers. The outcome of the case could set a new standard for streaming services in Australia, prompting other providers to rethink how they integrate advertising and pricing.