Amazon users allegedly misled
In a series of legal battles, Amazon is facing class action lawsuits in both the US and Germany over the labeling of digital films and series on its Prime Video platform.
In the US, a class action lawsuit is underway against Amazon for misleading customers by labeling digital films as "bought" on Prime Video. The plaintiffs accuse Amazon of violating California laws on unfair competition, false advertising, and consumer protection. The US federal court in Washington is addressing this issue, but a verdict is still pending.
Similar consumer protection concerns have arisen in Germany, where a class action lawsuit is underway against Amazon for charging an additional fee for ad-free streaming on Prime Video. Over 113,000 customers have joined the lawsuit, with the plaintiffs arguing that the term "Buy" is misleading and suggests ownership that does not exist.
The crux of the issue lies in the fact that users who purchase movies or series on Amazon Prime Video do not acquire permanent rights but only a license that can be revoked. If Amazon loses the rights to a film, the content can disappear from the customer's library without a refund.
Consumer attorney Wright Noel stated that the warning about the revocable license is hidden and written in a smaller font size than the rest of the text on the screen. The Hollywood Reporter reported that Amazon "does not meet the legal standards for a clear and conspicuous notice" regarding the revocable license.
Amazon refers to its general terms and conditions and considers the change lawful in the German lawsuit. However, in the US lawsuit, it is argued that contract changes are only permitted with the consent of the customers, according to the consumer center in the German lawsuit.
It's important to note that these lawsuits do not concern the Amazon bestsellers in the category Laptops & Notebooks. Prime Video is part of Amazon's Prime subscription, which also includes free deliveries when ordering. Amazon also offers a free streaming service called Freevee, which is funded by advertising and can be used without a subscription.
A patent dispute with a Nokia subsidiary threatened the operation of Prime Video in Germany, but the details of this dispute are not yet clear. A verdict is still pending in the German lawsuit, and the outcome could have significant implications for Amazon's digital content business.
As digital content consumption continues to grow, the question of ownership and transparency in the licensing of digital media is becoming increasingly important. These lawsuits against Amazon highlight the need for clearer communication and more transparent practices in the digital content industry.
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