Australia’s consumer watchdog, the ACCC, has launched court action against Amazon, alleging the company used allegedly unfair terms in contracts with Australian Amazon Prime subscribers to introduce advertising on Prime Video. Multiple outlets report the regulator claims Amazon buried small-print clauses in Prime agreements, enabling the service to change in a way that permitted ads to appear in Prime Video without providing equivalent protections or remedies for subscribers who signed up under ad-free expectations.
The dispute centres on whether Amazon’s contract terms complied with Australian consumer law and whether subscribers were unfairly subjected to service degradation after already paying for Prime, including periods purchased upfront. Reports say the ACCC alleges Amazon did not offer refunds to affected customers. The case is also described as drawing international attention because it concerns how Prime Video’s advertising works and how contract terms are presented. Legal analysis published alongside the reporting notes the allegations have implications beyond Australia, as similar streaming and subscription practices exist in other markets.
The ACCC is asking the Federal Court to consider the alleged breaches and the consequences for more than a million Australian subscribers.
