Amazon (AMZN) stock gained 3.20% on Tuesday, closing at $240.14, as the company expanded Prime member benefits while simultaneously confronting a new legal action from Australia’s consumer watchdog. The Australian Competition and Consumer Commission (ACCC) filed a Federal Court lawsuit alleging Amazon used five unfair contract terms to push advertising onto more than one million annual Prime Video subscribers between November 2023 and August 2025.
The heart of the dispute dates to July 2024, when Amazon introduced ads to Prime Video. Over 850,000 Australian subscribers who had already paid an upfront A$79 annual fee were suddenly required to pay an extra A$2.99 per month to keep the ad-free experience. The ACCC says no pro-rata refunds or compensation were offered. ACCC Chair Gina Cass-Gottlieb stated consumers “were left with no choice but to pay more to maintain the service they’d initially signed up for.” The regulator is seeking financial penalties (which could reach A$50 million per breach), refunds, legal costs, and court declarations. Amazon Australia said it cooperated with the investigation and is reviewing the filings.
Separately, Amazon launched a series of Prime savings that likely drove the day’s bullish sentiment. From July 2–5, Prime members can save $0.50 per gallon at over 7,500 U.S. fuel stations, including bp and Amoco, on top of the existing $0.10 per gallon discount. The company also introduced grocery deals on grilling meats, produce, and snacks, along with a new monthly $5 grocery credit for Prime Access members from July through September. Whole Foods added 50% off select frozen desserts for Prime members from July 1–7.
Wall Street analysts maintained a Strong Buy consensus on AMZN stock, with 44 Buy ratings and just one Hold. The average price target of $319.24 implies roughly a 33% upside. The market largely ignored the legal noise, focusing instead on the value-add initiatives for Prime subscribers.
