A class action lawsuit filed this week in San Jose, California alleges that Apple has misled customers about their digital book purchases on the Apple Books platform, potentially exposing the tech giant to $5 billion in damages.
The lawsuit, Morehouse et al v. Apple, Inc., claims that Apple violates California's consumer protection and false advertising laws by failing to clearly inform customers that they are purchasing licenses to digital books rather than permanent ownership.
According to the complaint, when Apple loses licensing rights to certain content, the company removes books from users' libraries without warning or refund, even though customers believed they had purchased permanent access to the content.
The legal filing points out that the Apple Books purchase screen lacks clear terms of service or licensing information. While Apple's Media Services Terms mention that content could become unavailable if licensing rights are lost, this information is buried in broader device agreements that users accept when setting up their Apple devices.
"Though it is unlikely, subsequent to your purchase, Content may be removed from the Services and become unavailable for further download or access from Apple," states Apple's Media Services Terms, as cited in the lawsuit.
The proposed class action aims to represent all individuals who purchased digital books or audiobooks through Apple Books during a yet-to-be-determined period. The lawsuit was filed by law firm Siri & Glimstad LLP and awaits class certification and assignment to a judge.
The case highlights growing concerns about digital content ownership rights and transparency in online marketplaces. As consumers increasingly shift to digital media, the distinction between purchasing permanent access versus limited licensing rights becomes increasingly relevant.