Australia's consumer regulator, the ACCC, has filed a lawsuit against Amazon in the Federal Court, alleging the company used unfair contract terms to introduce ads to Prime Video for over one million annual subscribers without offering refunds or compensation. Before July 2024, Prime Video in Australia was largely ad-free; Amazon then added ads and charged an extra A$2.99/month for subscribers who wanted to restore the ad-free experience they had paid for. The ACCC's case hinges on Australian consumer law's unfair contract terms regime, which now carries civil penalties. If successful, more than a million Australians could be entitled to compensation. The case reflects Australia's broader pattern of aggressive digital platform enforcement and could set a legal precedent relevant to other markets where Amazon made similar changes.
