A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership.
California Law Clarifies Digital Game Ownership
Effective Next Year
California's newly enacted AB 2426 requires online stores to clearly state whether a purchase grants ownership or a license to use a digital product, including video games and related applications. The law defines "game" broadly, encompassing applications accessed on various devices and including add-ons or additional content. To ensure clarity, the law mandates the use of conspicuous text and language in sales provisions—larger, contrasting type, or distinct formatting to set it apart from surrounding text.
Violators of this false advertising law face civil penalties or misdemeanor charges. The law prohibits advertising or selling digital goods as offering "unrestricted ownership" unless customers are explicitly informed otherwise. Legislators emphasized the importance of informing consumers that, unless a digital good is downloadable for offline access, the seller can revoke access at any time.
Taking effect next year, the law also bans the use of terms like "buy" or "purchase" to imply unrestricted ownership without clear disclosure. Assemblymember Jacqui Irwin highlighted the growing need for consumer protection in the increasingly digital marketplace.
Subscription Services Remain Unclear
Recent incidents of games being taken offline by companies like Ubisoft, citing licensing issues, have fueled concerns about consumer rights. The new law, however, doesn't address subscription services like Game Pass or the implications for offline game copies.
Earlier this year, a Ubisoft executive suggested players should accept the concept of not "owning" games in the traditional sense, given the rise of subscription models. Philippe Tremblay emphasized the need for a consumer shift towards accepting subscription-based access.
Assemblymember Irwin clarified that the law aims to ensure consumers understand the nature of their digital purchases. She noted the common misconception that purchasing a digital good grants permanent ownership, similar to physical media, while in reality, it often only provides a license that can be revoked.
