Amazon Faces Lawsuit for Alleged Ownership Issues with Prime Video Purchases

Amazon is currently embroiled in a class action lawsuit over alleged misleading practices on its Prime Video platform. The lawsuit, filed in the U.S. District Court for the Western District of Washington by lead plaintiff Lisa Reingold, accuses Amazon of deceiving customers into thinking they own movies and TV shows purchased on the platform when, in reality, they receive limited licenses that can be revoked.

According to the complaint, Reingold purchased a digital copy of the Nickelodeon series Bella and the Bulldogs Volume 4 for $17.79 on Prime Video, mistakenly believing that selecting “Buy” meant she owned it outright, similar to a physical DVD. However, Amazon’s Terms of Use state that such transactions only grant a “non-exclusive, non-transferable, non-sublicensable, limited license” to access the content. This means that if Amazon loses distribution rights or removes a title, the content may disappear from the user’s library.

The lawsuit alleges that Amazon fails to provide clear disclosures to customers before checkout. While users are presented with multiple “Buy” prompts and a final confirmation screen, there is a small-print disclaimer at the bottom stating, “BY BUYING OR RENTING, YOU RECEIVE A LICENSE TO THE VIDEO AND YOU AGREE TO OUR TERMS.” Plaintiffs argue that this disclaimer does not comply with California law, which requires explicit acknowledgment from the buyer or a plain-language disclosure that the purchase is only a license.

California’s Digital Property Rights Transparency Law, implemented on January 1, 2025, was designed to address consumer frustration over losing access to digital goods like movies and games. The law prohibits companies from using terms like “buy” or “purchase” without clearly informing consumers that they are receiving a revocable license rather than ownership.

The complaint raises claims under the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act, seeking certification of a class of California consumers who purchased digital audiovisual works through Amazon. The plaintiffs are seeking damages, restitution, disgorgement of profits, and a court order for Amazon to change its labeling practices to be more transparent.

Unlike physical media purchases like DVDs or Blu-rays, where consumers retain permanent copies, digital purchases entail the risk of losing access if a platform’s rights expire. The lawsuit argues that Amazon’s pricing model for digital content, similar to physical media, misleads consumers into believing they are acquiring permanent rights when they are only receiving revocable access.

The complaint highlights other instances of disappearing digital products, such as the 2023 shutdown of Ubisoft’s video game The Crew, which sparked consumer backlash. This case illustrates the inherent risks in the digital video market, where access is entirely dependent on platform control. As of now, Amazon has not yet responded in court to the lawsuit.