Amazon is facing a lawsuit in Australia after being accused of introducing advertisements to Prime Video for annual subscribers without compensating them, in a case that could affect how digital subscription platforms handle modifications to services after subscription fees have been paid.

The Australian Competition and Consumer Commission (ACCC) announced that it has filed a lawsuit against Amazon’s Australian branch, accusing the company of including unfair contractual clauses in annual subscription contracts for Amazon Prime and later using them to add advertisements to Prime Video.

Details of the lawsuit

According to the regulator, more than one million subscribers were affected between November 2023 and August 2025 after Amazon started displaying advertisements within Prime Video in July 2024, even though subscribers had paid in advance A$79 for an annual subscription that included ad-free content.

The commission added that those wishing to remove the ads were forced to pay an additional A$2.99 per month, considering that the company changed the terms of service after collecting annual subscription fees without providing any compensation to users.

The lawsuit also extended to Amazon Services LLC in the United States, as the competition commission alleges that the parent company participated in preparing contracts containing the disputed clauses, which could expand the scope of the case to include direct liability for the American company.

The Commission explained that the investigation began after receiving a large number of consumer complaints following the appearance of the advertisements on Prime Video in 2024, which then turned into formal lawsuits.

The regulatory body is demanding that the court issue rulings proving Amazon's violation of the law, impose financial penalties, compensate affected subscribers, and require the company to bear legal costs and take any other actions deemed appropriate by the court.

For its part, Amazon Australia confirmed that it is reviewing the details of the lawsuit, noting that it has cooperated with the Australian Competition and Consumer Commission throughout the investigation period.