The consumer watchdog is taking Amazon to court for burying allegedly unfair terms in the contracts of Prime subscriptions, which the ecommerce behemoth used to show ads to Prime Video’s Australian customers.
The ACCC launched legal action against the Seattle-headquartered company on Monday, claiming that more than a million subscribers had signed up to contracts that contained five terms that Amazon used to make unilateral changes.
Amazon introduced ads to Prime Video on July 2024, and told customers – who had already paid the annual subscription fee of $79 upfront – they had to pay an extra $2.99 a month to keep it ad-free.
“Consumers who wanted to avoid ads were left with no choice but to pay more to maintain the service they’d initially signed up for,” said ACCC chair Gina Cass-Gottlieb.
More to come
Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.Connect via X or email.From our partners
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