Does Amazon read/use text on images?

Yes. And I just caught them live doing it.

Take a look at this image.
→ Text on package? Shown floating around.
→ Text on callout? Shown floating around.

Around the image.
Around the title.
Even around the review area.

When I clicked into the item?
⤷ Not there.

When I looked up the item later?
⤷ Item is gone from Amazon.

It looks like Amazon goofed & exposed themselves.
(And quickly removed evidence.)

Andrew Bell has had many theories on this from doing extensive research - and this definitely amplifies it.

No chance a brand themselves can edit this.
⤷ How can they get text near review/title?

Just goes to show you:
Text on images IS in play for SOMETHING.