Combatting Mislabeling of Long-Term Streaming Rentals as Purchases

Words matter. Selecting the right words is key to effective communication in all aspects of life, whether it’s expressing emotions or outlining terms for a deal. While the idea of “buying” something implies ownership in most cases, the same can’t always be said for digital content.

Streaming services like Amazon Prime Video often give customers the choice to “rent” content for a limited time or to “buy” it. Opting for the “buy” option may lead some to believe they own the content forever. However, these “purchases” are essentially long-term licenses to access the content as long as the streaming service has the rights to distribute it. This could be for years, months, or just days after the transaction.

A recent lawsuit filed against Prime Video raises concerns about this practice. Lisa Reingold filed a proposed class-action lawsuit in California, accusing Amazon of misleading customers by categorizing long-term rentals as purchases. This legal battle could have implications for how streaming platforms present digital content to users.

This isn’t the first time Amazon has faced such allegations. A similar complaint was filed in 2020 but was dismissed in 2021 due to lack of standing. However, the current lawsuit might stand a better chance, thanks to a California law that prohibits selling digital goods using terms like “buy” or “purchase” unless certain conditions are met.

According to the law, sellers must clearly communicate to customers that they are purchasing a limited license to access the digital content. This recent legislation in California strengthens Reingold’s case, as she argues that Prime Video’s notifications about the nature of these transactions are not prominent enough for users to understand what they are actually buying.

The outcome of this case could potentially impact how digital content is labeled and sold by streaming services. Time will tell how this legal battle unfolds and what implications it may have for consumers who enjoy renting or purchasing digital content.