In brief
The Australian Competition and Consumer Commission has filed a lawsuit against Amazon for allegedly using unfair contract terms to force over a million Prime Video subscribers to pay more for ad‑free service. Amazon introduced ads to its Premium Video in early 2024 and added a $12.99 monthly fee for those who wanted to avoid ads. ACCC says the contracts had five unfair clauses allowing Amazon to change services unilaterally, giving no refund or redress to consumers. Amazon has said it is reviewing the complaint and has cooperated with regulators, while the case follows earlier US and UK actions against the company. Key points
The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Amazon, accusing the tech giant of putting unfair contract terms on Prime Video subscribers. The main claim: Amazon forced users who pre‑paid for the service to pay extra to keep it ad‑free.
What happened?
- Prime Video added ads in early 2024, raising the monthly subscription to $12.99 for those who wanted to avoid ads.
- ACCC says over 850,000 customers prepaid with ads now have a degraded, ad‑supported service unless they pay the extra fee.
- Amazon’s contracts included five “unfair terms” that allow the company to change services unilaterally and deny refunds or other redress.
- Amazon’s spokesperson said the company is reviewing the complaint and has cooperated with the ACCC throughout the investigation.
- This lawsuit follows earlier actions by the FTC in the U.S. and investigations in the U.K., showing regulators are keeping a close eye on Amazon’s practices.
The case highlights the importance of transparency in subscription services, especially when ads enter the mix. Stay tuned for updates as the legal battle unfolds and see how your favorite streaming services might change in the future.
