Why Amazon has been sued in Australia
What's the story
The Australian Competition and Consumer Commission (ACCC) has sued Amazon Australia, claiming that the company's Prime subscription contracts had unfair terms. These terms allegedly allowed Amazon to introduce advertisements on its video streaming platform, Prime Video. The ACCC claims that between November 2023 and August 2025, more than a million annual subscribers were negatively affected by these contract terms without any compensation from the company.
Accusation
'Amazon relied on unfair terms to introduce ads'
ACCC Chair Gina Cass-Gottlieb has accused Amazon AU of "including multiple unfair terms in its contracts with Australian annual Prime subscribers." She alleged that the company relied on some of these terms to introduce ads on Amazon Prime Video. After July 2024, subscribers who wanted to keep their streaming experience ad-free were charged an extra A$2.99 per month, even though they had already paid A$79 ($54.40) upfront for the service, the ACCC said in a statement.
Corporate complicity
Amazon Services knowingly involved, claims ACCC
The ACCC has also alleged that Amazon Services LLC was knowingly involved in the conduct of its Australian unit. The regulator claims that the former was part of drafting the Australian contracts containing these unfair terms. The ACCC is now seeking declarations, penalties, consumer redress, costs and other orders against Amazon Australia over this matter.
Company response
Amazon reviewing case
In response to the ACCC's lawsuit, an Amazon Australia spokesperson said that the company is "reviewing the case filed by the ACCC in detail." They also emphasized that they had cooperated with the regulator throughout its investigation. The ACCC launched an investigation into contracts of Amazon's local unit after receiving consumer reports about ads being introduced on Prime Video in 2024.