Australia sues Amazon for making allegedly unfair contracts with subscribers
Summary
Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), has sued Amazon. The ACCC claims that Amazon’s contracts with Prime Video subscribers included unfair terms after Amazon started adding ads to the service and charging more to avoid them.Key Facts
- The ACCC sued Amazon over adding ads to Prime Video and charging extra for an ad-free option.
- Amazon changed Prime Video from being ad-free to including ads starting in early 2024 worldwide.
- In Australia, subscribers had to pay an extra fee up to 12.99 Australian dollars monthly to avoid ads.
- Over 1 million subscribers signed contracts with Amazon between November 2023 and August 2025.
- Many customers who prepaid for a year still received ads unless they paid more to remove them.
- The ACCC says Amazon used five unfair contract terms allowing it to change services without offering refunds.
- Amazon has faced similar complaints in other countries, including the US and UK, about unfair practices.
- The ACCC’s case focuses on consumer protection laws and customers’ rights regarding contract changes.
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