The Australian Competition and Consumer Commission (ACCC) claims that between November 2023 and August 2025, Amazon Australia imposed unfair terms on over a million annual Prime subscribers. These terms required subscribers to either accept advertising on Prime Video or pay an additional AU$2.99 ($2.05) per month for an ad-free experience, without any refund option for those who chose to cancel.
ACCC chair Gina Cass-Gottlieb stated that the regulator is seeking consumer redress, penalties, and other legal actions against Amazon. The investigation was prompted by consumer complaints following the introduction of ads in July 2024. In response, an Amazon Australia spokesperson indicated that the company is reviewing the case and has cooperated with the ACCC.
This legal challenge comes on the heels of a 3.2% rise in Amazon's shares, attributed to strong consumer demand during its recent Prime Day event in the U.S., where online spending exceeded $26.4 billion over a few days. The outcome of this lawsuit could have significant implications for Amazon's operations in Australia and its overall business model regarding subscription services