ACCC sues Amazon for introducing ads to Prime using unfair contracts
The consumer watchdog is taking Amazon to court over claims the e-commerce giant eliminated unfair terms in Prime subscription agreements that Prime Video uses to show ads to its Australian customers.
The ACCC launched legal action against the Seattle-based company on Monday, claiming more than a million subscribers signed up to contracts containing five terms that Amazon used to make unilateral changes.
Amazon began serving ads to Prime Video in July 2024, telling customers who had already prepaid the $79 annual subscription fee that they would have to pay an extra $2.99 per month to remain ad-free.
“Consumers looking to avoid advertising are left with no choice but to pay more to maintain the service they originally signed up for,” ACCC chair Gina Cass-Gottlieb said.
More to come
Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.Connect with: X or email.
