Amazon NASDAQ:AMZN is facing fresh legal pressure on 2 fronts, agreeing to pay $2.25 million to settle a U.S. FTC case while also facing a lawsuit in Australia over Prime subscription terms.
The U.S. settlement follows an FTC investigation into claims that Amazon failed to provide legally required records to customers who were victims of identity theft. The case centered on information tied to fraudulent purchases made in customers' names under the Fair Credit Reporting Act.
Separately, Australia's competition regulator sued Amazon's local unit over Prime Video contract terms. The ACCC alleges Amazon used unfair terms between November 2023 and August 2025, forcing more than 1 million annual Prime subscribers to accept ads or pay AU$2.99 per month for an ad-free option after ads were introduced in July 2024.
the cases are not large financially, but they add to Amazon's regulatory overhang. The next thing to watch is whether Australia's lawsuit forces changes to Prime contract terms.