ACCC takes Amazon Australia to Federal Court over alleged breaches
- 1 day ago
- 1 min read
Amazon is facing legal action in the Federal Court after Australia’s consumer watchdog accused the company of using unfair contract terms to introduce ads on Prime Video without offering refunds to affected subscribers.
The Australian Competition and Consumer Commission (ACCC) claims Amazon changed the service for more than 850,000 annual Prime subscribers in 2024, moving them to an ad-supported version without providing a refund for the remaining part of their prepaid subscription.
The changes were announced in 2023 and took effect from July 2, 2024. Customers who wanted to continue watching without ads were required to pay an extra $2.99 per month.
The ACCC alleges Amazon’s contracts allowed the company to change the service conditions without giving customers enough protection or compensation. The watchdog says the terms created an unfair balance between Amazon and consumers.
ACCC Chair Gina Cass-Gottlieb said businesses must ensure subscription agreements are fair and transparent for customers.
The regulator is seeking penalties, refunds or other compensation for affected customers, along with additional legal orders.
The case also involves Amazon’s US parent company, which the ACCC alleges was involved in the decision to introduce advertising in Australia.
The action is one of the first major cases under updated unfair contract term laws, which apply to agreements made or renewed from November 2023. The ACCC says subscription services will remain a key area of focus.
Source : Variety News
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