Prime Video Hit With Lawsuit Over Claims Customers Don’t Really Own Purchased Movies

Amazon is facing a new lawsuit that takes aim at how it sells digital movies and TV shows on Prime Video. The proposed class action, filed Friday in federal court in Washington, says the company misleads people into thinking they are buying films outright when, in reality, they are only paying for a license that can be taken away.

The complaint points out that Amazon uses the word “buy” on its platform, but then hides the true terms in small text on the confirmation page.

According to the lawsuit, the fine print says: “You receive a license to the video and you agree to our terms.” Wright Noel, the lawyer representing consumers, argues that Amazon fails to make it clear that the so-called purchase is not permanent. “The warning is buried at the very bottom of the screen, in font that is considerably smaller than the other text on the screen,” Noel wrote.

This issue is not unique to Amazon. Most digital stores, from video streaming services to online gaming platforms, work the same way. People often think they own what they buy online, but in fact, they are just paying for temporary access.

If a company shuts down servers, loses rights, or simply decides to pull content, buyers can lose access with no refund. This has happened many times in the gaming world. In 2023, Ubisoft shut down servers for The Crew, leaving players unable to play a game they had already paid for.

The move sparked the “Stop Killing Games” movement, which pushes for stronger protections so companies cannot erase products people bought.

The problem also stretches into music and ebooks. Platforms like iTunes, Spotify, and Kindle don’t give customers full ownership either. When you “buy” an ebook, you’re really buying a license that Amazon or another provider controls.

If the publisher or store removes the title, it disappears from your library. Over the years, stories have surfaced of ebooks being deleted remotely from Kindle devices without warning.

The rise of these licensing practices is one reason DVDs, Blu-rays, and other physical media are making a comeback. Owning a disc means you can watch it whenever you want, without worrying that a license will expire or that a company will suddenly revoke access.

Amazon has faced legal challenges over this before. In a 2020 case, the company argued that using the word “buy” wasn’t misleading. It pointed to Webster’s Dictionary, saying that “buy” can mean paying for the right to use something rather than permanent ownership.

The court allowed some parts of that lawsuit to move forward, including claims under Washington’s unjust enrichment law.

Now, with new legislation in place, Amazon may face more trouble. A California law that went into effect this year bans sellers from using the word “purchase” unless buyers truly get full ownership.

Companies must also clearly inform customers when they are only receiving a limited license. The new lawsuit says Amazon does not meet those standards, accusing the company of violating California unfair competition and false advertising laws.

The plaintiffs are seeking damages, including the return of profits Amazon made and possible punitive damages, arguing the company acted intentionally to mislead consumers. Amazon has not yet responded to the lawsuit, according to The Hollywood Reporter.

This case highlights a bigger debate over digital ownership. As more people move to streaming and digital stores, the question remains: when you click “buy,” are you really buying, or just renting something that can vanish?

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