https://www.theverge.com/2024/9/26/24254922/california-digital-purchase-disclosure-law-ab-2426
California’s new law forces digital stores to admit you’re just licensing content, not buying it
California Governor Gavin Newsom has signed a law (AB 2426) to combat “disappearing” purchases of digital games, movies, music, and ebooks. The legislation will force digital storefronts to tell customers they’re just getting a license to use the digital media, rather than suggesting they actually own it.
When the law comes into effect next year, it will ban digital storefronts from using terms like “buy” or “purchase,” unless they inform customers that they’re not getting unrestricted access to whatever they’re buying. Storefronts will have to tell customers they’re getting a license that can be revoked as well as provide a list of all the restrictions that come along with it. Companies that break the rule could be fined for false advertising.
The new law won’t apply to stores that offer “permanent offline” downloads and comes as a direct response to companies like PlayStation and Ubisoft. In April, Ubisoft started deleting The Crew from players’ accounts after shutting down servers for the online-only game. And last year, Sony said it would remove purchased Discovery content from users’ PlayStation libraries before walking back the move.
“As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important,” California Assemblymember Jacqui Irwin said in a press release. “I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”
Forcing storefronts to disclose that they’re just selling licenses won’t stop them from taking away digital purchases, but it will at least make people more aware that what they’re buying can be taken away at any time.
https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2426
AB 2426: Consumer protection: false advertising: digital goods.
Existing law makes it unlawful for any person doing business in California and advertising to consumers in California to make any false or misleading advertising claim. Existing law makes a person who violates specified false advertising provisions liable for a civil penalty, as specified, and provides that a person who violates those false advertising provisions is guilty of a misdemeanor.
This bill would, subject to specified exceptions, additionally prohibit a seller of a digital good from advertising or offering for sale a digital good, as defined, to a purchaser with the terms buy, purchase, or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good, or alongside an option for a time-limited rental, unless the seller receives at the time of each transaction an affirmative acknowledgment from the purchaser, or the seller provides to the consumer before executing each transaction a clear and conspicuous statement, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program.