Amazon Faces Lawsuit for Allegedly Charging Subscribers More to Remove Ads

Amazon has been sued by Australia’s consumer watchdog over allegations that it unfairly altered Prime Video subscription terms by introducing advertisements and charging users an extra fee to continue enjoying an ad-free streaming experience.

The Australian Competition and Consumer Commission (ACCC) announced on Tuesday that it had initiated legal proceedings against Amazon, claiming the company used unfair contract terms affecting more than one million annual Prime subscribers between November 2023 and August 2025.

ACCC Alleges Unfair Contract Terms

According to the regulator, Amazon’s Prime subscription agreements included five terms that allegedly allowed the company to make unilateral changes to the service during the subscription period without offering customers an appropriate remedy.

The ACCC alleges Amazon relied on these clauses to roll out advertisements on Prime Video in July 2024. Until then, the streaming platform had been largely ad-free for paying subscribers.

The watchdog further claimed that customers had paid an upfront annual subscription fee of 79 Australian dollars for access to Prime Video, but were later required to pay an additional monthly fee if they wished to continue watching content without advertisements.

As a result, subscribers who wanted to retain the same viewing experience they had originally paid for were left with no option but to spend more, the ACCC said.

Amazon Says It Is Reviewing the Case

Responding to the lawsuit, Amazon said it is examining the claims and noted that it had cooperated with the regulator throughout the investigation. “We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers,” the company said, according to the BBC.

Ads Introduced Across Multiple Markets

Prime Video remained largely ad-free for more than a decade before Amazon began introducing advertisements across several countries in 2024.

In Australia, the company informed subscribers that advertisements would become part of the standard Prime Video experience unless they opted to pay an additional monthly fee, taking the cost of the ad-free plan to 12.99 Australian dollars per month.

Amazon introduced Prime Video in India in 2016 and similarly rolled out advertisements for Indian subscribers in 2024 as part of its broader global strategy.