A lawsuit has been filed against Amazon Prime Video, accusing the streaming service of misleading customers by labeling long-term rentals as purchases. The lawsuit argues that the term ‘buy’ implies ownership of the content, while in reality, users only receive a time-limited license to access the material. This practice is being challenged under a California law that prohibits the use of ‘buy’ for digital goods without clear, upfront terms of use. Amazon is expected to defend its practice by asserting that users should be aware of the fine print, which outlines the limitations of their access. The case has significant implications for the digital content industry, as it could influence how streaming services communicate the terms of access to their users.
Under the California law, digital content providers are allowed to use the term ‘buy’ under certain conditions. The law permits the use of ‘buy’ if the seller receives explicit acknowledgment from the customer that they are receiving a license to access the digital content, they receive a complete list of the license’s conditions, and they are aware that access may be unilaterally revoked. The lawsuit argues that these conditions are not met in the case of Amazon Prime Video, as the fine print is buried at the bottom of the page and becomes visible only after the user has already clicked ‘buy.’ This raises questions about the clarity and transparency of the terms of use for digital content.
Consumer attorney Danny Karon has expressed support for the plaintiff’s claim, arguing that the average consumer would not associate the term ‘buy’ with a limited-time rental. Karon tells Ars Technica that if the facts are as alleged, Amazon’s behavior would likely constitute a breach of contract or statutory fraud. The case is expected to hinge on whether the fine print and terms of use are sufficient communication for the average consumer. If the court rules in favor of the plaintiff, it could set a precedent for how digital content providers must disclose their licensing terms to customers, potentially leading to changes in how streaming services operate.