Amazon is facing a proposed class action lawsuit alleging that its Prime Video platform misleads customers into believing they permanently own movies and television shows purchased through the service, when in fact they receive limited licenses that can be revoked.

The suit, filed August 21 in the U.S. District Court for the Western District of Washington, accuses Amazon.com Services LLC of violating California’s new Digital Property Rights Transparency Law, along with the state’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act.

Lead plaintiff Lisa Reingold, a California resident, claims she purchased a digital copy of the Nickelodeon series Bella and the Bulldogs Volume 4 for $17.79 on Prime Video, believing that selecting “Buy” meant she owned it like a DVD. According to the complaint, Amazon’s Terms of Use clarify that such transactions only grant a “non-exclusive, non-transferable, non-sublicensable, limited license” to access the content. If Amazon loses distribution rights or removes a title, the content may disappear from the user’s library.

The complaint argues Amazon fails to provide clear disclosures before checkout. Customers are presented with multiple “Buy” prompts and a final confirmation screen. At the bottom of that screen, in small print, Amazon states: “BY BUYING OR RENTING, YOU RECEIVE A LICENSE TO THE VIDEO AND YOU AGREE TO OUR TERMS.” Plaintiffs contend this disclaimer does not satisfy California law, which requires either explicit acknowledgment by the buyer or a plain-language disclosure that the purchase is only a license.

California’s Digital Property Rights Transparency Law, which took effect January 1, 2025, was enacted to address growing consumer frustration over losing access to digital goods such as movies and games. The statute prohibits companies from using terms like “buy” or “purchase” unless consumers are clearly informed that they are receiving a revocable license rather than ownership.

The complaint asserts claims under the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act. Reingold and her attorneys seek certification of a class of California consumers who purchased digital audiovisual works through Amazon, along with damages, restitution, disgorgement of profits, and a court order requiring Amazon to change its labeling practices.

While consumers who purchase DVDs or Blu-rays retain physical copies, those who “buy” digital versions may lose access if a platform’s rights expire. The plaintiffs argue that Amazon charges prices comparable to physical media while offering only revocable access, causing economic harm to consumers who reasonably believed they were purchasing permanent rights.

The complaint cites other examples of disappearing digital products, including the 2023 shutdown of Ubisoft’s video game The Crew, which triggered consumer backlash under the campaign “Stop Killing Games.” Plaintiffs suggest similar risks exist in digital video markets, where access depends entirely on platform control.

Amazon has not yet filed a response in court.