California's New Law Clarifies Digital Game Ownership
A new California law, AB 2426, aims to increase transparency in the digital game marketplace 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 tackles misleading advertising of digital goods, including video games and related applications.
The legislation mandates clear and conspicuous language in sales agreements, specifying the nature of the transaction. This includes using distinct text formatting to highlight whether the purchase provides unrestricted ownership or a revocable license. Violations could result in civil penalties or misdemeanor charges.
The law prohibits using terms like "buy" or "purchase" to imply unrestricted ownership unless explicitly clarified. Assemblymember Jacqui Irwin emphasized the need for consumer protection in the increasingly digital marketplace, noting that consumers often mistakenly believe they own digital goods permanently.
The law's impact on subscription services like Game Pass remains unclear, as does its application to offline game copies. This ambiguity follows recent controversies where companies like Ubisoft removed games from availability, leaving players without access to previously purchased titles.
A Ubisoft executive previously suggested that players should become accustomed to not technically owning games, reflecting the industry's shift towards subscription models. However, Assemblymember Irwin stressed that AB 2426 aims to ensure consumers understand exactly what they are purchasing.
This new law represents a significant step towards greater consumer protection in the digital gaming sphere, promoting transparency and clarity in transactions. The long-term effects and interpretation of its provisions, particularly regarding subscription services, will be closely watched.
