Australia's ACCC sues Amazon over Prime Video ads and A$2.99 fee

The regulator alleges unfair Prime contract terms let Amazon alter Prime Video for more than 1 million annual subscribers without compensation, including introducing ads and charging extra for ad-free viewing.

27d ago

Fact Check

Reuters, CNBC, and ABC News independently confirm every element of the claim: the ACCC sued Amazon Australia over unfair Prime contract terms, ads on Prime Video affecting 1+ million annual subscribers, the November 2023–August 2025 timeframe, and the A$2.99/month ad-free fee. The official ACCC media release URL with matching title and date further confirms the Federal Court action, though the page itself was access-denied on direct fetch.

Summary

Australia's consumer watchdog has sued Amazon's local unit, alleging Prime subscription contracts contained unfair terms that let the company unilaterally make negative changes to its service, including adding advertising to Prime Video and charging extra for ad-free viewing. The ACCC said the conduct affected more than 1 million annual subscribers between November 2023 and August 2025. After July 2024, customers who wanted to keep ad-free streaming had to pay an additional A$2.99 per month despite having already paid A$79 upfront for an annual subscription. The regulator also alleged Amazon.com Services LLC was knowingly concerned in the conduct because it helped draft the Australian contracts. The ACCC is seeking declarations, penalties, consumer redress, costs and other orders.

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