Amazon faces an Australian lawsuit over unfair Prime contract terms it used to bring ads onto Prime Video without compensation

by | Jul 2, 2026 | Latest E-commerce News & Updates

Amazon's Australian unit is being taken to court by the country's competition regulator over Prime subscription contracts that allegedly contained unfair terms letting it add advertising to Prime Video, according to Reuters. The ACCC says that between November 2023 and August 2025, Amazon Australia used those terms to make negative changes for more than a million annual subscribers without compensation, and that after July 2024 anyone wanting to keep ad-free streaming had to pay an extra A$2.99 a month despite already paying A$79 upfront. The regulator also alleges Amazon.com Services LLC was knowingly involved in drafting the contracts, and is seeking declarations, penalties, and consumer redress.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Amazon

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