Lawsuit Says Amazon Prime Video Misleads When You 'Buy' a Long-Term Streaming Rental

'Typically when something is available to 'buy,' ownership of that good or access to that service is offered in exchange for money,' writes Ars Technica.
'That's not really the case, though, when it comes to digital content.'

Often, streaming services like Amazon Prime Video offer customers the options to 'rent' digital content for a few days or to 'buy' it. Some might think that picking 'buy' means that they can view the content indefinitely. But these purchases are really just long-term licenses to watch the content for as long as the streaming service has the right to distribute it — which could be for years, months, or days after the transaction. A lawsuit recently filed against Prime Video challenges this practice and accuses the streaming service of misleading customers by labeling long-term rentals as purchases. The conclusion of the case could have implications for how streaming services frame digital content...

[The plaintiff's] complaint stands a better chance due to a California law that took effect in January banning the selling of a 'digital good to a purchaser with the terms 'buy,' 'purchase,' or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good, or alongside an option for a time-limited rental.' There are some instances where the law allows digital content providers to use words like 'buy.' One example is if, at the time of transaction, the seller receives acknowledgement from the customer that the customer is receiving a license to access the digital content; that they received a complete list of the license's conditions; and that they know that access to the digital content may be 'unilaterally revoked....'

The case is likely to hinge on whether or not fine print and lengthy terms of use are appropriate and sufficient communication. [The plaintiff]'s complaint acknowledges that Prime Video shows relevant fine print below its 'buy' buttons but says that the notice is 'far below the 'buy movie' button, buried at the very bottom' of the page and is not visible until 'the very last stage of the transaction,' after a user has already clicked 'buy.'

Amazon is sure to argue that 'If plaintiff didn't want to read her contract, including the small print, that's on her,' says consumer attorney Danny Karon. But he tells Ars Technica 'I like plaintiff's chances. A normal consumer, after whom the California statute at issue is fashioned, would consider 'buy' or 'purchase' to involve a permanent transaction, not a mere rental... If the facts are as plaintiff alleges, Amazon's behavior would likely constitute a breach of contract or statutory fraud.'

Read more of this story at Slashdot.