Encounter News Punjabi

Australian Regulator Sues Amazon for Forcing Ads and Extra Charges on Prime Video Subscribers

WhatsApp Channel Join Now

Canberra: The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Amazon, alleging that the e-commerce and streaming giant utilized unfair contract terms to introduce advertisements on Prime Video and forced existing annual subscribers to pay extra to maintain an ad-free viewing experience. The consumer watchdog announced on Tuesday that it had officially filed a lawsuit in the Federal Court, targeting the contractual terms included in Amazon Australia’s annual Prime subscription agreements between November 2023 and August 2025.

According to the regulator, the disputed contract terms gave the company unilateral power to make significant changes to the Prime Video service for more than one million Australian subscribers without offering any form of financial compensation or recourse. ACCC Chair Gina Cass-Gottlieb alleged that Amazon explicitly relied on these unfair clauses when it introduced advertisements to the platform in July 2024. Following that rollout, subscribers who wished to continue watching content without commercial interruptions were forced to pay an additional fee of A$2.99 per month, despite having already paid an upfront annual membership fee of A$79 (US$54). The regulator contends that including and enforcing multiple unfair terms in these consumer contracts directly violated Australian consumer protection laws.

The ACCC launched its comprehensive investigation into Amazon Australia’s subscription contracts after receiving a wave of formal complaints from consumers following the introduction of advertisements in 2024. This legal challenge in Australia follows severe regulatory scrutiny for the company globally. In 2025, Amazon agreed to pay a massive US$2.5 billion in penalties and consumer refunds in the United States, alongside implementing changes to its cancellation processes, to settle a prominent consumer protection lawsuit filed by the US Federal Trade Commission (FTC).

Currently, advertisements on Prime Video have become a standard feature across major global markets, including Australia, Austria, Brazil, Canada, France, Germany, India, Italy, Japan, Mexico, the Netherlands, New Zealand, Spain, Sweden, the United Kingdom, and the United States. Across all of these international territories, the company has implemented a tiered system where subscribers must opt for an additional monthly premium if they want to bypass commercials.

All news on Encounter News is computer-generated and sourced from third parties. Please read and verify carefully. We will not be responsible for any issues. 

Encounter News
Encounter News
Encounter Media Group

Latest Articles

US Supreme Court Strikes Down President Trump’s Executive Order, Upholds Birthright Citizenship

Washington DC: In a major legal defeat for the Trump administration,...

Afghanistan Claims Airstrikes on ISIS Bases Across Pakistan, Escalating Regional Tensions

Kabul: Regional tensions have intensified after Afghanistan's Ministry of Defence claimed...

India-US Trade Deal in Final Stage, Only ‘1-2%’ of Agreement Left: US Ambassador Sergio Gor

Washington DC/New Delhi: The proposed India-US bilateral trade agreement is nearing...

Record-Breaking Heatwave Devastates Europe as Wildfires Rage Across the Balkans

Balkans: The Balkans felt the severe impact of a record-breaking heatwave...

Pakistan Says 29 Militants Eliminated in Border Operation Following Karachi Terror Attack

Karachi: Pakistan’s security forces have claimed to have killed 29 suspected...

Operation Amistad: India Delivers 66 Tonnes of Humanitarian Aid to Earthquake-Hit Venezuela

Venezuela: India has successfully delivered a major humanitarian assistance package to...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here