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 of digital goods.
The legislation defines "game" broadly to include applications accessed on various devices, including add-ons and DLC. Stores must use clear and conspicuous language, such as larger or contrasting font, to inform consumers about the nature of their purchase. Failure to comply could result in civil penalties or misdemeanor charges.
The law prohibits advertising digital products as offering "unrestricted ownership" unless this is truly the case. Terms like "buy" or "purchase" cannot be used without explicit clarification if the purchase doesn't grant unrestricted access. Assemblymember Jacqui Irwin emphasized the importance of consumer understanding, noting that many believe digital purchases grant permanent ownership, similar to physical media, when in reality they often only grant a license.
The law's impact on subscription services like Game Pass remains unclear, as does its application to offline game copies. This ambiguity follows comments from a Ubisoft executive who suggested players should become accustomed to not technically owning games in the subscription model era. However, Assemblymember Irwin clarified that the law aims to ensure consumers fully understand what they are purchasing, regardless of the model.
In summary, California's new law represents a significant step towards protecting consumers in the digital marketplace by demanding greater clarity regarding the nature of digital game purchases. While some areas remain undefined, the core aim is to prevent misleading advertising and ensure consumers understand the terms of their transactions.
