ACCC sues Amazon AU over unfair Prime contract terms
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The news: The Australian Competition and Consumer Commission (ACCC) has launched legal action against Amazon AU for allegedly including unfair contract terms to introduce ads to Amazon Prime Video without giving users a right to a refund.
The context: The ACCC alleges Amazon AU’s prime subscription contacts contained five unfair contract terms between November 2023 and August 2025, allowing the company to unilaterally make adverse changes during the contract period without offering subscribers a remedy.
The regulator also alleges Amazon AU relied on one or more of those unfair terms when it introduced advertising to Prime Video in Australia in July 2024. Prior to that, Amazon Prime Video had been largely ad-free.
From July 2024, subscribers wanting to retain an ad-free streaming were required to pay an additional $2.99 a month, despite annual subscribers having already paid $79 upfront. The ACCC further alleges Amazon US made the decision to introduce advertising globally and assisted with its implementation in Australia.
The watchdog is seeking declarations, penalties, consumer redress, costs and other orders.
What they said: “All businesses are required to balance rights and obligations in their standard form contracts with consumers to ensure they are fair,” ACCC Chair Gina Cass-Gottlieb said.
“Contraventions of unfair contract term protections are subject to significant penalties. We strongly encourage all businesses, particularly those offering subscriptions, to review their contracts to ensure they comply with the Australian Consumer Law,” she added.
The source: ACCC
