Washington, Aug 26, 2025 – Amazon is facing a proposed class-action lawsuit accusing its Prime Video platform of misleading consumers by marketing digital movies as permanent “purchases,” when in fact they are only revocable licenses.
The complaint, filed in Washington federal court, alleges that Prime Video fails to clearly disclose that access to purchased movies can be revoked or altered if Amazon loses licensing rights. For example, a director’s cut of Alien could be swapped out or removed entirely without the buyer’s consent.
Plaintiffs argue that the practice violates California’s 2025 digital transparency law, which requires companies to prominently disclose when digital content is sold under a license rather than as true ownership. The lawsuit cites violations of false advertising, unfair competition, and consumer legal remedies laws, seeking damages and punitive compensation.
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The case underscores a broader concern in the digital economy: consumers rarely own digital content outright, instead paying for conditional access that can disappear at any time. Similar backlash erupted in 2023, when Ubisoft shut down servers for The Crew, leaving players unable to use the game.
Amazon has previously defended its model, saying customers are aware purchases are licensed and that its terms of service provide sufficient disclosure. Consumer advocates, however, argue the notices are buried in fine print and fail to meet new legal standards.
If successful, the lawsuit could reshape digital commerce practices, forcing streaming platforms to be more transparent about whether users are buying ownership or just a license.
