ACCC sues Amazon over alleged unfair conduct for introducing Prime streaming ads
Australia's consumer watchdog, the ACCC, has launched legal action against Amazon in the Federal Court, alleging the company engaged in unfair conduct by introducing advertisements to its Prime Video streaming service without adequately notifying customers or offering them a way to avoid the ads.
Background
The Australian Competition and Consumer Commission (ACCC) is the country's antitrust and consumer protection regulator, similar to the US FTC. Amazon Prime bundles free shipping with Prime Video streaming. The ACCC alleges Amazon introduced ads into Prime Video in early 2024 without properly notifying existing subscribers or giving them a straightforward way to cancel — instead forcing them to pay a higher fee to retain the ad-free tier they originally paid for. Under Australian Consumer Law, companies cannot unilaterally change key terms on existing subscribers in ways that cause "detriment" without clear consent. The case tests whether adding ads to a previously ad-free subscription constitutes a material change that triggers cancellation rights, which would affect how streaming and subscription services across the industry handle price changes and feature rollbacks.