California's New Law: Clarifying Digital Game Ownership

A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Effective next year, these platforms must clearly state whether a purchase grants ownership or merely a license.

The law, AB 2426, aims to combat misleading advertising of digital goods, including video games and related applications. It defines a "game" broadly to encompass applications accessible on various devices. The law requires clear and prominent language, specifying that purchases are licenses, not outright ownership, using easily distinguishable text formatting.

Violators face civil penalties or misdemeanor charges. The law also prohibits advertising suggesting unrestricted ownership unless explicitly clarified. Assemblymember Jacqui Irwin highlighted the importance of consumer understanding, noting the discrepancy between perceived ownership and the reality of licensed access.

The law's impact extends to the use of terms like "buy" or "purchase," requiring explicit clarification when access is not unrestricted. Irwin emphasized the need for consumer protection in the increasingly digital marketplace.

However, the law's application to subscription services (like Game Pass) and offline game copies remains unclear. Recent instances of games being taken offline by companies like Ubisoft have fueled the debate over consumer rights. Ubisoft's director of subscriptions, Philippe Tremblay, previously suggested a shift in consumer expectations towards accepting the lack of technical ownership in subscription models.

Irwin clarified that the law aims to ensure consumers understand the nature of their digital purchases, acknowledging the common misconception that digital purchases equate to permanent ownership. This new legislation seeks to bridge the gap between consumer perception and the legal reality of licensed digital goods.