Amazon’s troubles seem to be increasing, legal action is being taken against Amazon in Australia. The country’s competition watchdog has accused the company of wrongly showing advertisements on Prime Video and then taking extra money from subscribers for showing videos without advertisements. Australian Competition and Consumer Commission i.e. ACCC has initiated legal action against Amazon Australia in the Federal Court.
allegations against amazon
The ACCC alleges that there were unfair terms in the company’s Prime subscription contract, due to which the company could make major changes to the streaming service without paying any compensation to customers. According to the regulator, more than one million annual Prime subscribers are affected between November 2023 and August 2025.
This matter will happen in 2024 Amazon Is related to the decision to show advertisements on Prime Video. The ACCC said customers who had already paid for an annual Prime membership suddenly started receiving an advertised version of the streaming service. Those who wanted to continue watching without commercials had to pay additional fees.
According to a Reuters report, ACCC Chair Gina Cass-Gottlieb said in a statement, “We allege that Amazon AU included a number of unfair terms in its contracts with Australian annual Prime subscribers and then used some of these terms to bring advertising to Amazon Prime Video.”
Amazon put extra burden on people
According to the regulator, customers who wanted to continue ad-free streaming after July 2024 will have to pay an additional A$2.99 per month, despite already paying A$79 for an annual Prime membership. At the time the ads were introduced, more than 850,000 Australian customers had already subscribed for a year.
The ACCC argues that unless these customers agreed to pay an additional monthly fee, they actually received a downgraded version of the service for the remainder of their prepaid membership. When announcing this change, Amazon told customers that paying the additional fee would prevent ads from appearing on Prime Video.
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