Class Action Lawsuit Targets Movie Ownership

Amazon is facing a proposed class action lawsuit alleging it misleads customers by advertising digital movies and TV shows as 'purchases,' when in reality buyers only receive revocable licenses that can disappear if Amazon loses distribution rights. From the Hollywood Reporter: On Friday, a proposed class action was filed in Washington federal court against Amazon over a 'bait and switch' in which the company allegedly misleads consumers into believing they've purchased content when they're only getting a license to watch, which can be revoked at any time. The lawsuit accuses Amazon, which didn't respond to a request for comment, of misrepresenting the nature of movie and TV transactions during the purchase process. On its website and platform, the company tells consumers they can 'buy' a movie. But hidden in a footnote on the confirmation page is fine print that says, 'You receive a license to the video and you agree to our terms,' the complaint says.

The issue is already before a court. In a 2020 lawsuit alleging unfair competition and false advertising over the practice, Amazon maintained that its use of the word 'buy' for digital content isn't deceptive because consumers understand their purchases are subject to licenses. Quoting Webster's Dictionary, it said that the term means 'rights to the use or services of payment' rather than perpetual ownership and that its disclosures properly warn people that they may lose access. The court ultimately rebuffed Amazon's bid to dismiss the lawsuit outside of a claim alleging a violation of Washington's unjust enrichment law.

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