Australia's consumer watchdog, the Australian Competition and Consumer Commission (ACCC), has taken a significant step against tech giant Amazon, alleging that the introduction of advertising into its Prime Video service contravenes consumer protection laws. The move is expected to have far-reaching implications for the 1.2 million Australians who subscribe to Prime, with potential repercussions extending beyond the country's borders.
For over a decade, Prime Video was a cornerstone of Amazon's popular subscription service, offering a commercial-free streaming experience that complemented its core delivery service. The global rollout of advertising within Prime began in early 2024, prompting changes to contract terms and monthly fees for Australian subscribers.
The ACCC alleges that when Amazon introduced ads into Prime Video, it informed Australian customers that an additional fee would be required to maintain an ad-free experience, pushing the monthly price up to AUD 12.99. This change affected over 850,000 Australians who had prepaid for a full year of Prime service, leaving them with little choice but to accept a degraded, ad-supported service or pay extra.
The ACCC's case centres on five specific contract terms signed by over a million customers between November 2023 and August 2025. These terms allegedly permit Amazon Australia to unilaterally alter its services without providing subscribers with contractual entitlements for refunds or redress.
This development is the latest in a series of high-profile disputes involving Amazon's customer treatment, mirroring similar cases in the United States. In the US, the Federal Trade Commission (FTC) has previously taken action against Amazon over claims it enrolled individuals in Prime without consent and made it difficult to cancel subscriptions.