California's New Law Clarifies Digital Game Ownership
A new California law, AB 2426, aims to increase transparency in digital game sales by requiring online stores like Steam and Epic Games to clearly state whether a purchase grants ownership or merely a license. This law, signed by Governor Gavin Newsom, takes effect next year and combats misleading advertising practices.
The legislation mandates that digital storefronts use clear and conspicuous language to inform consumers about the nature of their purchases. This includes using distinct font styles or colors to highlight the distinction between licensing and ownership. The law defines "game" broadly, encompassing applications accessed on various devices, including add-ons and additional content.
Violators face potential civil penalties or misdemeanor charges for false advertising. The law specifically prohibits advertising or selling digital products as offering "unrestricted ownership" unless this is explicitly true. Legislators emphasized the importance of consumer understanding in an increasingly digital marketplace.
The law also restricts the use of terms like "buy" or "purchase" unless consumers are explicitly informed that the purchase doesn't equate to unrestricted access or ownership. Assemblymember Jacqui Irwin highlighted the need for consumer protection as physical media sales decline.
Subscription Services and Offline Copies Remain Unclear
The law's impact on subscription services like Game Pass and the issue of offline game copies remains undefined. Recent instances of games being taken offline by companies like Ubisoft have sparked debate about consumer rights. A Ubisoft executive previously suggested that players should become accustomed to not "owning" games in the traditional sense, given the rise of subscription models.
Assemblymember Irwin clarified that the law aims to ensure consumers understand the nature of their digital purchases, emphasizing the difference between a license and true ownership. This is particularly relevant as consumers often mistakenly believe they acquire permanent ownership of digital goods, similar to physical media.
