A new California law now mandates digital game platforms like Steam and Epic to clearly inform players whether their payment grants actual ownership or merely a license.
California Legislation Requires Transparency on Game Ownership Status
Effective Next Year
California has enacted legislation requiring digital storefronts to disclose the nature of consumer purchases. The law mandates that online platforms must clarify whether transactions constitute product ownership or license acquisition.
Governor Gavin Newsom recently signed AB 2426 to strengthen consumer protections against misleading digital product advertising. The legislation encompasses video games and related digital applications, defining protected "games" as any interactive application accessed through electronic devices, including add-ons and supplemental content.
The statute requires digital retailers to present this information through prominent visual cues - such as larger typography, contrasting colors, or distinctive symbols - ensuring consumers can easily comprehend purchase terms.
Violations for deceptive advertising may result in civil penalties or misdemeanor charges. The legislation specifies that existing false advertising provisions carry both civil and criminal consequences for non-compliance.
The law further prohibits sellers from advertising "unrestricted ownership" of digital products. Legislators emphasized that in our digital marketplace, consumers must understand their purchases may not constitute genuine ownership, as sellers can revoke access to internet-dependent content at any time.
Starting next year, the law will restrict online stores from using terms like "buy" or "purchase" without explicitly clarifying these don't guarantee unrestricted product ownership.
Assemblymember Jacqui Irwin stated: "As retailers transition from physical media, consumer protection in digital purchases becomes increasingly vital. This legislation ensures deceptive practices of implying consumer ownership become historical artifacts."
Subscription Service Regulations Remain Unclear
Recent game shutdowns by companies like Sony and Ubisoft - such as The Crew's removal citing "licensing constraints" - have sparked consumer rights discussions within gaming communities regarding purchased content becoming inaccessible.
The new legislation doesn't explicitly address subscription services like Game Pass or game rental models, leaving regulatory gaps regarding offline access and subscription-based content.
Earlier this year, Ubisoft's subscription director Philippe Tremblay suggested gamers should adapt to non-ownership models, comparing the transition to how consumers moved from physical media collections to digital streaming services.
Tremblay noted: "As with DVD collections, gamers need to transition from ownership mindsets. With cloud saves preserving progress, the focus shifts from possession to access."
Assemblymember Irwin further clarified the law's purpose: "When consumers buy digital content, they often assume permanent ownership similar to physical media. In reality, they've purchased revocable licenses subject to seller terms."
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