The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Amazon Australia.
The ACCC alleges the tech giant included “five unfair contract terms” in its Prime subscriptions with around 1 million customers between November 2023 and August 2025.
Amazon Prime is a paid subscription service that offers streaming services and fast delivery of products.
The unfair terms meant subscribers who wanted to stay ad-free had to pay an additional $2.99 per month, even though they already paid $79 upfront for the year.
“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.
In addition, the ACCC also alleges the U.S. head office, Amazon.com, was “knowingly concerned” about its Australian branch’s actions, and that it was “involved in drafting” local contracts, as well as implementing advertising globally.
The ACCC is seeking declarations, penalties, consumer redress, and costs.
An Amazon Australia spokesperson told The Epoch Times the company is reviewing the matter.
“We are reviewing the case filed by the ACCC in detail. We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers,” the spokesperson said.
