Amazon Prime Video ad insertion and ACCC lawsuit - Revision history

Louis: expand the us ruling detail, add the german court ruling and the us case number, note the later pro rata refund change and the netflix comparison

2026-07-06T01:31:04Z

expand the us ruling detail, add the german court ruling and the us case number, note the later pro rata refund change and the netflix comparison

← Older revision		Revision as of 01:31, 6 July 2026
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	The ACCC's concise statement alleges that as of July 2, 2024, more than 850,000 Prime subscribers had paid an annual fee for a subscription that included Prime Video, more than 600,000 of whom had subscribed or renewed since November 9, 2023.<ref name="concise" /> Writing in The Conversation, Paterson said those subscribers were left with ''"a degraded Prime Video service for the balance of their subscription,"'' and that consumers who chose to cancel were not offered ''"a pro rata refund or other meaningful redress."''<ref name="conversation" />		The ACCC's concise statement alleges that as of July 2, 2024, more than 850,000 Prime subscribers had paid an annual fee for a subscription that included Prime Video, more than 600,000 of whom had subscribed or renewed since November 9, 2023.<ref name="concise" /> Writing in The Conversation, Paterson said those subscribers were left with ''"a degraded Prime Video service for the balance of their subscription,"'' and that consumers who chose to cancel were not offered ''"a pro rata refund or other meaningful redress."''<ref name="conversation" />

	The Australian rollout followed a change in the United States, where Amazon introduced ads to standard Prime Video in 2024. American members could opt out of the ads only by paying an additional US$2.99 per month on top of the annual US$139 Prime fee.<ref name="deadline" />		The Australian rollout followed a change in the United States, where Amazon introduced ads to standard Prime Video in 2024. American members could opt out of the ads only by paying an additional US$2.99 per month on top of the annual US$139 Prime fee.<ref name="deadline" /> Amazon's approach differed from Netflix, which added a lower-priced ad tier while keeping its ad-free plans. Netflix co-CEO Greg Peters said in 2024 that the company had considered making ads the default, but chose not to, citing its ''"long history of not having ads"'' and a preference not to force members ''"into a change and get them mad."''<ref name="deadline" />

	== ACCC Federal Court action ==		== ACCC Federal Court action ==
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	== Change-in-benefits defense and US precedent ==		== Change-in-benefits defense and US precedent ==

	A comparable class action over the 2024 Prime Video ads ~~had already been dismissed~~ in the ~~United States~~. In July 2025, U.S. District Judge Barbara J. Rothstein, ~~sitting in Washington state, rejected~~ the argument that adding ads amounted to a price increase.<ref name="deadline" /> Rothstein wrote that the addition of ads ''"constituted a change in subscription benefits as opposed to a price increase,"'' and that all subscribers agree to a contract when they join Prime, giving Amazon the ability to alter the nature of the services provided.<ref name="deadline" />		The United States had already seen a comparable class action over the 2024 Prime Video ads. Wilbert Napoleon sued Amazon.com, Inc. on February 9, 2024 in the U.S. District Court for the Western District of Washington (''Napoleon v. Amazon.com, Inc.'', Case 2:24-cv-00186), pleading seven counts, including breach of contract and state consumer-protection claims, over the ads and the US$2.99 charge to remove them.<ref name="napoleon" /> In July 2025, U.S. District Judge Barbara J. Rothstein dismissed the suit, rejecting the argument that adding ads amounted to a price increase.<ref name="deadline" /> Rothstein wrote that the addition of ads ''"constituted a change in subscription benefits as opposed to a price increase,"'' and that all subscribers agree to a contract when they join Prime, giving Amazon the ability to alter the nature of the services provided.<ref name="deadline" /> She acknowledged that for members who paid to keep their streaming ad-free, the change had an effect on their wallets she called ''"tantamount"'' to a price increase, then explained why she still treated it as a benefit change:

	Paterson wrote that the Australian case may be legally difficult for a different reason. She noted that the ACCC's own published guidance suggests a fair contract should let consumers terminate without a penalty after a unilateral change from the supplier, but does not explicitly require pro rata refunds, which she said could form part of Amazon's defence.<ref name="conversation" /> She has argued for years that unilateral variation clauses are inherently unfair:		<blockquote>''The Court, however, is compelled to maintain the distinction between a benefit removal and a price increase for several reasons. First, this distinction is repeatedly reinforced in the contracts themselves. Benefit modifications and removals are expressly authorized throughout both contracts; price increases are circumscribed and allowed only according to certain conditions.''</blockquote><ref name="deadline" />

			Rothstein noted that the subscription fee did not change for members who took no action, and that ''"the only subscribers who experienced any increase in price were those who voluntarily chose to incur one by affirmatively opting in to the $2.99-a-month charge to avoid ads."''<ref name="deadline" />

			Paterson wrote that the Australian case may be legally difficult for a different reason. She noted that the ACCC's own published guidance suggests a fair contract should let consumers terminate without a penalty after a unilateral change from the supplier, but does not explicitly require pro rata refunds, which she said could form part of Amazon's defence.<ref name="conversation" /> By the time the case was filed, Amazon had amended its Prime and Prime Video terms to add a pro rata refund for annual subscribers who cancel after a materially adverse change, a change the ACCC records in its concise statement and Paterson confirmed was in effect on her own account.<ref name="concise" /><ref name="conversation" /> She has argued for years that unilateral variation clauses are inherently unfair:

	<blockquote>''The whole purpose of entering into a contract is to lock in a promise to supply goods or services on agreed terms. If the supplier ... can change the terms at any time, in any way it likes, it undermines the whole point of making a contract.''</blockquote><ref name="conversation" />		<blockquote>''The whole purpose of entering into a contract is to lock in a promise to supply goods or services on agreed terms. If the supplier ... can change the terms at any time, in any way it likes, it undermines the whole point of making a contract.''</blockquote><ref name="conversation" />

	Paterson added that with Amazon US also named, the case would be watched in other jurisdictions with similar unfair-contract-term laws, such as the United Kingdom and the European Union.<ref name="conversation" />		Paterson added that with Amazon US also named, the case would be watched in other jurisdictions with similar unfair-contract-term laws, such as the United Kingdom and the European Union.<ref name="conversation" />

			== German court ruling ==

			A court in another jurisdiction reached the opposite result on the same practice. In December 2025, the Regional Court of Munich I (Landgericht München I) granted a claim brought against Amazon Digital Germany GmbH by the Federation of German Consumer Organisations (vzbv), Case 33 O 3266/24.<ref name="lgmunich" /><ref name="vzbv" /> The consumer association had challenged Amazon's move to add advertising to Prime Video, announced in a January 3, 2024 email telling customers that from February 5, 2024 titles could carry limited advertising, as an impermissible unilateral change to the contract, and had argued the email was misleading under Section 5 of Germany's Unfair Competition Act because it suggested customers would from then on receive only an ad-supported service.<ref name="lgmunich" /> The judgment is not yet final.<ref name="vzbv" />

	== Prime Video Ultra ==		== Prime Video Ultra ==
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	<ref name="deadline">{{Cite web \|author=Dade Hayes \|title=Class-Action Suit Against Amazon For Putting Ads On Prime Video Dismissed By Federal Judge \|url=https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ \|work=Deadline \|date=2025-07-17 \|url-status=live \|archive-url=https://web.archive.org/web/20250726010510/https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ \|archive-date=2025-07-26 \|access-date=2026-07-05}}</ref>		<ref name="deadline">{{Cite web \|author=Dade Hayes \|title=Class-Action Suit Against Amazon For Putting Ads On Prime Video Dismissed By Federal Judge \|url=https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ \|work=Deadline \|date=2025-07-17 \|url-status=live \|archive-url=https://web.archive.org/web/20250726010510/https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ \|archive-date=2025-07-26 \|access-date=2026-07-05}}</ref>
	<ref name="primevideoultra">{{Cite web \|author=Amazon Staff \|title=Prime Video's Ad Free subscription is now Prime Video Ultra for $4.99 a month \|url=https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription \|publisher=Amazon \|date=2026-03-13 \|url-status=live \|archive-url=https://web.archive.org/web/20260505221059/https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription \|archive-date=2026-05-05 \|access-date=2026-07-05}}</ref>		<ref name="primevideoultra">{{Cite web \|author=Amazon Staff \|title=Prime Video's Ad Free subscription is now Prime Video Ultra for $4.99 a month \|url=https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription \|publisher=Amazon \|date=2026-03-13 \|url-status=live \|archive-url=https://web.archive.org/web/20260505221059/https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription \|archive-date=2026-05-05 \|access-date=2026-07-05}}</ref>
			<ref name="napoleon">{{Cite web \|title=Napoleon v. Amazon.com, Inc., class action complaint (Case 2:24-cv-00186) \|url=https://www.classaction.org/media/napoleon-v-amazon-com-inc.pdf \|publisher=U.S. District Court for the Western District of Washington \|date=2024-02-09 \|format=PDF \|access-date=2026-07-05}}</ref>
			<ref name="lgmunich">{{Cite web \|title=Einseitige Abschaffung der Werbefreiheit durch Streaming-Anbieter \|trans-title=Unilateral removal of ad-free service by a streaming provider \|url=https://www.justiz.bayern.de/gerichte-und-behoerden/landgericht/muenchen-1/presse/2025/13.php \|publisher=Landgericht München I \|date=2025-12-17 \|language=de \|access-date=2026-07-05}}</ref>
			<ref name="vzbv">{{Cite web \|title=Urteil gegen Amazon: Einführung von Werbung bei Prime Video war unzulässig \|trans-title=Judgment against Amazon: introducing ads on Prime Video was impermissible \|url=https://www.vzbv.de/urteile/urteil-gegen-amazon-einfuehrung-von-werbung-bei-prime-video-war-unzulaessig \|publisher=Verbraucherzentrale Bundesverband \|date=2025-12-16 \|language=de \|access-date=2026-07-05}}</ref>
	</references>		</references>

Louis: new article on the accc federal court case over prime video ads

2026-07-05T23:06:20Z

new article on the accc federal court case over prime video ads

New page

{{IncidentCargo
|Company=Amazon
|StartDate=2024-07
|EndDate=
|Status=Active
|ProductLine=
|Product=Amazon Prime Video
|ArticleType=Service
|Type=Post-purchase terms change, Post-purchase performance reduction
|Description=Amazon added ads to Prime Video, then charged A$2.99/month to remove them; the ACCC sued in 2026 over allegedly unfair contract terms
}}

In July 2024, [[Amazon]] introduced advertising to Amazon Prime Video in Australia and required annual subscribers who wanted to keep ad-free streaming to pay an additional A$2.99 per month, despite their having already paid A$79 upfront for a Prime subscription that included the service.<ref name="accc" /> On June 29, 2026, the Australian Competition and Consumer Commission (ACCC) commenced Federal Court proceedings against Amazon Commercial Services Pty Ltd, alleging that its Prime contracts with more than one million annual subscribers contained five unfair contract terms that let it make such negative changes unilaterally during the contract period without offering subscribers a remedy.<ref name="concise" /><ref name="accc" /> The ACCC also alleges that Amazon.com Services LLC was ''"knowingly concerned"'' in the conduct, and is seeking declarations, penalties, consumer redress, costs, and other orders.<ref name="accc" />

[[File:Amazon-prime-video-ads-accc-media-release.png|thumb|center|upright=2.6|The Australian Competition and Consumer Commission's June 30, 2026 media release alleges that Amazon AU's Prime contracts with more than one million annual subscribers contained five unfair terms, and that after July 2024 subscribers had to pay an additional A$2.99 a month to keep ad-free streaming.<ref name="accc" />]]

== Background ==

Amazon launched its Prime subscription service in Australia in June 2018.<ref name="accc" /> Subscribers enter into a contract with Amazon Commercial Services Pty Ltd (Amazon AU) through a standardised online sign-up process, at a price of A$9.99 each month or A$79 for a 12-month subscription paid upfront.<ref name="accc" /> The subscription bundles several benefits, including access to the Prime Video streaming service alongside delivery and shopping benefits.<ref name="accc" /> Both Amazon AU and Amazon.com Services LLC (Amazon US) are owned by the US entity Amazon.com, Inc.<ref name="accc" /> Writing in The Conversation, University of Melbourne law professor Jeannie Marie Paterson noted that Prime Video is Australia's second most popular streaming service, behind Netflix.<ref name="conversation" />

== The 2024 ad insertion ==

According to the ACCC's concise statement, Amazon AU announced on September 22, 2023 that it would introduce advertisements to Prime Video movies and television shows in Australia in 2024. The ACCC pleads that on May 21, 2024, Amazon notified subscribers that the change would take effect on July 2, 2024 and that continuing to watch ad-free would require an additional A$2.99 per month.<ref name="concise" /> Before that date, the ACCC alleges, almost all Prime Video content had been delivered ''"advertisement-free."''<ref name="concise" /> Annual subscribers had already paid A$79 upfront for a Prime subscription that included the service.<ref name="accc" /> The ACCC says it investigated Amazon AU's contracts after receiving consumer reports about the introduction of the ads in 2024.<ref name="accc" />

The ACCC's concise statement alleges that as of July 2, 2024, more than 850,000 Prime subscribers had paid an annual fee for a subscription that included Prime Video, more than 600,000 of whom had subscribed or renewed since November 9, 2023.<ref name="concise" /> Writing in The Conversation, Paterson said those subscribers were left with ''"a degraded Prime Video service for the balance of their subscription,"'' and that consumers who chose to cancel were not offered ''"a pro rata refund or other meaningful redress."''<ref name="conversation" />

The Australian rollout followed a change in the United States, where Amazon introduced ads to standard Prime Video in 2024. American members could opt out of the ads only by paying an additional US$2.99 per month on top of the annual US$139 Prime fee.<ref name="deadline" />

== ACCC Federal Court action ==

The ACCC filed its concise statement in the Federal Court of Australia's Victoria registry on June 29, 2026, and announced the action the next day.<ref name="concise" /><ref name="accc" />

[[File:Amazon-prime-video-ads-accc-concise-statement-p1.png|thumb|center|upright=2.2|Page one of the ACCC's concise statement, filed in the Federal Court of Australia's Victoria registry, names Amazon Commercial Services Pty Ltd and Amazon.com Services LLC as respondents and pleads five unfair terms in Prime contracts held between November 1, 2023 and August 18, 2025.<ref name="concise" />]] The regulator alleges that between November 1, 2023 and August 18, 2025, Amazon AU's Prime contracts contained five terms, across two categories governing variation of the services and variation of the agreement, that permitted it to unilaterally make materially adverse changes without any contractual entitlement for subscribers to receive refunds or other meaningful redress, and that Amazon AU relied on one or more of those terms when it introduced the Prime Video ads.<ref name="concise" /> The ACCC further alleges that Amazon US was knowingly concerned in the conduct: involved in drafting the Australian contracts that contained the terms, responsible for the decision to introduce advertising to Prime Video globally, and involved in helping implement that decision in Australia.<ref name="concise" /><ref name="accc" />

ACCC Chair Gina Cass-Gottlieb described the allegation in the regulator's media release:

<blockquote>''We allege that Amazon AU included multiple unfair terms in its contracts with Australian annual Prime subscribers, and it then relied on some of these terms to bring ads onto Amazon Prime Video.''</blockquote><ref name="accc" />

She added that ''"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."''<ref name="accc" />

In its concise statement, the ACCC pleads that the terms were unfair within the meaning of section 24 of the Australian Consumer Law and void under section 23(1), that Amazon AU contravened section 23(2A) by proposing each term and section 23(2C) by relying on them, and that Amazon US is liable under section 224(1)(e) as a party knowingly concerned in the contraventions.<ref name="concise" /> The regulator identifies the clauses as the kind described in section 25(d) and (g) of the Australian Consumer Law, which lists terms permitting one party to unilaterally vary a contract or the characteristics of the services supplied.<ref name="concise" /><ref name="accc" /> Unfair contract term protections have been part of the Australian Consumer Law since it first took effect in 2010, but since November 2023 penalties have applied to proposing or relying on such terms in contracts made or renewed from that date.<ref name="accc" /> The ACCC describes the case as one of the first contested matters it has taken under that new penalty regime, which applies to contracts made or renewed from November 9, 2023.<ref name="accc" />

The regulator is seeking declarations, penalties, consumer redress, costs, and other orders against both Amazon AU and Amazon US.<ref name="accc" /><ref name="conversation" /> Paterson wrote in The Conversation that the maximum penalty is the greatest of A$50 million, three times the value of the benefit obtained from the conduct, or 30% of adjusted turnover during the breach period.<ref name="conversation" /> Cass-Gottlieb used the case to warn other subscription businesses:

<blockquote>''Contraventions of unfair contract term protections are subject to significant penalties. We strongly encourage all businesses, particularly those offering subscriptions, to review their contracts to ensure they comply with the Australian Consumer Law.''</blockquote><ref name="accc" />

An Amazon Australia spokesperson said in a statement that the company was reviewing the case:

<blockquote>''We have cooperated with the ACCC throughout its investigation and remain focused on providing the best experience for our Australian customers.''</blockquote><ref name="conversation" />

== Change-in-benefits defense and US precedent ==

A comparable class action over the 2024 Prime Video ads had already been dismissed in the United States. In July 2025, U.S. District Judge Barbara J. Rothstein, sitting in Washington state, rejected the argument that adding ads amounted to a price increase.<ref name="deadline" /> Rothstein wrote that the addition of ads ''"constituted a change in subscription benefits as opposed to a price increase,"'' and that all subscribers agree to a contract when they join Prime, giving Amazon the ability to alter the nature of the services provided.<ref name="deadline" />

Paterson wrote that the Australian case may be legally difficult for a different reason. She noted that the ACCC's own published guidance suggests a fair contract should let consumers terminate without a penalty after a unilateral change from the supplier, but does not explicitly require pro rata refunds, which she said could form part of Amazon's defence.<ref name="conversation" /> She has argued for years that unilateral variation clauses are inherently unfair:

<blockquote>''The whole purpose of entering into a contract is to lock in a promise to supply goods or services on agreed terms. If the supplier ... can change the terms at any time, in any way it likes, it undermines the whole point of making a contract.''</blockquote><ref name="conversation" />

Paterson added that with Amazon US also named, the case would be watched in other jurisdictions with similar unfair-contract-term laws, such as the United Kingdom and the European Union.<ref name="conversation" />

== Prime Video Ultra ==

[[File:Amazon-prime-video-ads-accc-prime-video-ultra.png|thumb|center|upright=2.4|Amazon's own announcement that its Prime Video Ad Free subscription became Prime Video Ultra at US$4.99 a month.<ref name="primevideoultra" />]]

In the United States, Amazon later restructured its ad-free option. In March 2026, Amazon announced Prime Video Ultra, a US$4.99-per-month tier that replaced the Prime Video Ad Free subscription, reserving 4K/UHD streaming and Dolby Atmos for that tier while keeping HD and Dolby Vision in the base Prime Video benefit.<ref name="primevideoultra" /> Amazon said Prime membership itself was unchanged at US$14.99 per month or US$139 per year, and that the Ultra tier also raised concurrent streams to five and offline downloads to 100.<ref name="primevideoultra" />

== See also ==

* [[Amazon Prime Music ad insertion and download removal (2026)]]
* [[Advertising overload]]
* [[Enshittification]]

== References ==
<references>
<ref name="accc">{{Cite web |title=Amazon in court for introducing ads to Prime Video using allegedly unfair contract terms |url=https://www.accc.gov.au/media-release/amazon-in-court-for-introducing-ads-to-prime-video-using-allegedly-unfair-contract-terms |publisher=Australian Competition and Consumer Commission |date=2026-06-30 |access-date=2026-07-05}}</ref>
<ref name="concise">{{Cite web |author=Australian Competition and Consumer Commission |title=Concise Statement: Australian Competition and Consumer Commission v Amazon Commercial Services Pty Ltd |url=https://www.accc.gov.au/system/files/ACCC%20v%20Amazon%20-%20concise%20statement_0.pdf |publisher=Federal Court of Australia |date=2026-06-29 |format=PDF |url-status=live |archive-url=https://web.archive.org/web/20260702003718/https://www.accc.gov.au/system/files/ACCC%20v%20Amazon%20-%20concise%20statement_0.pdf |archive-date=2026-07-02 |access-date=2026-07-05}}</ref>
<ref name="conversation">{{Cite web |last=Paterson |first=Jeannie Marie |title=Amazon is being taken to court for introducing ads to Prime Video. The world will be watching |url=https://theconversation.com/amazon-is-being-taken-to-court-for-introducing-ads-to-prime-video-the-world-will-be-watching-286433 |work=The Conversation |date=2026-06-30 |url-status=live |archive-url=http://web.archive.org/web/20260701083714/https://theconversation.com/amazon-is-being-taken-to-court-for-introducing-ads-to-prime-video-the-world-will-be-watching-286433 |archive-date=2026-07-01 |access-date=2026-07-05}}</ref>
<ref name="deadline">{{Cite web |author=Dade Hayes |title=Class-Action Suit Against Amazon For Putting Ads On Prime Video Dismissed By Federal Judge |url=https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ |work=Deadline |date=2025-07-17 |url-status=live |archive-url=https://web.archive.org/web/20250726010510/https://deadline.com/2025/07/class-action-suit-against-amazon-ads-prime-video-dismissed-1236461429/ |archive-date=2025-07-26 |access-date=2026-07-05}}</ref>
<ref name="primevideoultra">{{Cite web |author=Amazon Staff |title=Prime Video's Ad Free subscription is now Prime Video Ultra for $4.99 a month |url=https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription |publisher=Amazon |date=2026-03-13 |url-status=live |archive-url=https://web.archive.org/web/20260505221059/https://www.aboutamazon.com/news/entertainment/prime-video-ultra-ad-free-streaming-subscription |archive-date=2026-05-05 |access-date=2026-07-05}}</ref>
</references>

[[Category:Amazon]]
[[Category:Subscription services]]
[[Category:Service degradation]]
[[Category:Advertising]]
[[Category:2026 incidents]]