Amazon’s Prime Video Faces Class-Action Lawsuit for Improperly Using, Distributing Customer Data
Two plaintiffs are hauling Amazon into court for alleged violations of the 1987 Video Privacy Protection Act.
Amazon’s lawyers are fairly busy these days. According to Media Post, the internet retail giant is facing a new lawsuit in court, as two Prime Video customers are complaining that the streaming platform is sharing information about their online TV and movie-watching habits with other branches of Amazon, as well as with third parties in a manner that violates federal law. The two Prime Video users behind the lawsuit have made it a class-action complaint, and if they win, it could cause sweeping changes to the way Amazon uses customer data.
- The suit claims that Amazon is offering personally identifiable data about its customers to third-party companies for marketing reasons.
- Prime Video’s user agreement specifies that any data shared will not be personally identifiable to the viewer in question.
- Amazon also faces a class-action suit over its rollout of ads on Prime Video earlier this year.
The lawsuit originates from two Prime Video customers, Meredith Beagle of Virginia and Jordan Guerrero of Louisiana. The complaint says that Amazon Services is giving out personally identifiable data to third-party companies, as well as kicking it along to its parent company Amazon Inc. “for audience measurement purposes, marketing purposes, market research purposes, advertising purposes, and other data collection and analysis purposes.”
The pair claim in their complaint that this action violates the 1987 Video Privacy Protection Act, which prohibits video rental outlets from disclosing personally identifiable information about their customers’ viewing histories. The plaintiffs allege that Amazon has never followed the VPPA’s rules about seeking written consent before using and sharing such data.
Among the information allegedly shared by Amazon Services with Amazon Inc. is “the titles of videos watched, playback start dates and times, playback end dates and times, whether it was a purchase or rental history, billing address, [Internet service provider] information, and location information.”
Prime Video’s user agreement says that the company “may provide certain information regarding your subscription status and use of Digital Content, including viewing history, to video content providers, such as third parties offering subscription services through Prime Video Channels.”
However, it also says that it will “provide this information in a manner that is not identifiable to you (unless you authorize sharing identifiable information with a specific video content provider).”
Will This Lawsuit Against Prime Video Succeed?
The suit hinges on the argument that the data shared by Prime Video is “personally identifiable,” which may be difficult to distinguish in court from data that Amazon is allowed to share with others. The VPPA also has an exception for disclosures made in the ordinary course of business, and this might derail the suit before it has much of a chance to gain steam.
If the suit is successful, however, it could lead to big changes in how streaming services collect and use customer information. It might mean that streamers have to ask for additional consent before distributing viewer history habits, though it’s not likely to stop video providers from giving out your data altogether.
Amazon is facing another class-action lawsuit currently, stemming from its introduction of ads on Prime Video. In February, a complaint was filed against Amazon because it had allegedly violated its terms of service for customers who had signed up for an annual subscription of Prime Video with no ads, then forced those viewers to accept ads unless they paid to upgrade to a higher tier.
Whether these suits are successful or not, at least Prime Video subscribers have the option to pursue litigation against the streamer if they wish. Roku device owners are afforded no such recourse; the company’s terms of service forbid users from initiating or joining lawsuits against Roku, which has come in handy for the company in the wake of a recent data breach that saw more than 15,000 customer accounts hacked.
As the legal system tends to work rather slowly in these cases, observers shouldn’t expect an immediate verdict on the latest lawsuit to be filed against Amazon. The case could have major implications on customer data and privacy, but it may struggle to find legal traction.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.