Overview
- The ACCC filed Federal Court proceedings on Tuesday, June 30, 2026, alleging Amazon Commercial Services Pty Ltd used five standard-form contract terms between November 2023 and August 2025 that let it make unilateral, adverse changes to annual Prime subscriptions.
- The regulator says Amazon relied on those clauses when it added advertising to Prime Video on July 2, 2024, leaving more than one million prepaid annual members with an ad-supported service unless they paid an extra A$2.99 per month to remain ad-free.
- The complaint names Amazon.com Services LLC as knowingly concerned, alleging the US entity helped draft the Australian contracts and played a role in the global decision to introduce ads.
- The ACCC is seeking court declarations that the terms were unfair, civil penalties, consumer redress including refunds, legal costs and other orders under Australia’s strengthened unfair contract‑term penalty regime.
- Amazon Australia says it is reviewing the filings in detail and cooperated with the ACCC during its investigation, while the case could set a test case for how subscription services may change prepaid offerings and face penalties under Australian law.