Australia’s consumer watchdog has filed legal proceedings against Amazon, alleging that changes to its Prime Video subscription service misled customers and forced them to pay extra to continue watching content without advertisements.
The Australian Competition and Consumer Commission (ACCC) claims Amazon introduced advertisements on Prime Video for existing subscribers without adequately informing them that ad-free viewing would now require an additional payment. According to the regulator, customers who had originally signed up expecting uninterrupted streaming were left with two choices, accept advertisements or pay an extra fee to remove them.
The ACCC argues that the changes may have breached Australian consumer laws by altering the terms of the subscription after customers had already signed up. It alleges that Amazon’s approach created unfair contract terms and potentially misled consumers about the benefits included in their existing Prime memberships.
The regulator has approached the Federal Court, seeking penalties, declarations and other orders against Amazon. It also wants the court to ensure that affected consumers receive appropriate remedies if the company is found to have violated consumer protection laws.
Amazon has defended the move, saying it remains committed to complying with local laws and providing value to customers. The company is expected to respond to the allegations through the legal process.
The case centres on Amazon’s decision to introduce advertisements on Prime Video while offering an optional premium tier for ad-free streaming at an additional cost. Similar changes have been rolled out in several countries as streaming platforms look for new revenue sources amid rising content and production costs.
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