Amazon is facing legal action in Australia after the country’s competition watchdog accused the company of using unfair contract terms to charge subscribers extra for an ad-free streaming experience on Prime Video. The lawsuit, filed by the Australian Competition and Consumer Commission (ACCC), alleges that Amazon altered the terms of its subscription service after customers had already paid upfront for annual memberships.
According to the ACCC, more than one million annual Prime subscribers who signed up between November 2023 and August 2025 were affected by contract terms that allegedly allowed Amazon to make unilateral changes to its streaming service without offering customers any remedy. The watchdog claims these provisions enabled the company to introduce advertisements during active subscription periods without obtaining meaningful consent from subscribers.
The ACCC further alleges that Amazon relied on these terms to introduce advertisements on Prime Video in July 2024. Prior to that, the platform had largely remained ad-free for paying subscribers. Customers who wished to continue watching content without advertisements were reportedly required to pay an additional monthly fee, despite having already purchased a subscription that initially included an ad-free viewing experience.
According to the regulator, Amazon charged consumers 79 Australian dollars upfront for an annual Prime membership and later required them to pay even more to maintain the same uninterrupted streaming experience. The ACCC argued that subscribers were left with little choice but to accept the additional fee if they wanted to avoid advertisements, calling the practice unfair and detrimental to consumers.
Responding to the lawsuit, Amazon said it is reviewing the legal proceedings and noted that it had cooperated with the ACCC throughout the investigation. The company added that it remains committed to providing the best possible experience for its Australian customers.
Prime Video operated as an ad-free streaming service for over a decade as part of Amazon’s Prime membership. However, the company began introducing advertisements across several markets, including Australia and India, in early 2024. In Australia, subscribers were informed that they would need to pay an additional monthly charge to continue enjoying an ad-free experience, increasing the overall cost of the streaming service to 12.99 Australian dollars per month for those opting out of advertisements.
The outcome of the case could have broader implications for subscription-based streaming platforms, particularly regarding how companies modify service terms after customers have already committed to long-term plans.