[wentwood]

You Think You Own Your Digital Games? California Law Says Otherwise
New legislation requires digital storefronts to clarify licensing terms to customers.

By David Wolinsky on September 26, 2024 at 11:44AM PDT

California Governor Gavin Newsom has signed a law, AB 2426, to address concerns over "disappearing" purchases of digital media, including games, movies, music, and ebooks. The law mandates that digital storefronts inform customers they are acquiring a license to use these products rather than indicating actual ownership, as reported by The Verge.

Effective next year, the legislation prohibits digital retailers from using terms like "buy" or "purchase" unless they clearly state that customers do not receive unrestricted access. Retailers must disclose that these licenses can be revoked and provide a list of associated restrictions. Companies that fail to comply may face fines for false advertising.

This law emerges as digital game sales surge and subscription models dominate the industry, prompting questions about ownership. The gaming community is increasingly aware that titles may not be accessible in the future. An episode of GameSpot's Spot On earlier this year discussed a hypothetical scenario in which, wanting to revisit a game like Alan Wake 2 in 2045, players could find it unavailable due to the shift away from physical sales.

The legislation responds to practices by major companies like PlayStation and Ubisoft. Earlier this year, Ubisoft removed The Crew from player accounts after shutting down its servers, while last year, Sony indicated it would remove purchased content from users' libraries before reversing that decision.

"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," said California Assemblymember Jacqui Irwin in a press release. "AB 2426 will ensure the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past."

While the law raises awareness about the limitations of digital licenses, it does not prevent storefronts from revoking access to purchased content. This legislation reflects ongoing efforts to clarify the nature of digital acquisitions and the evolving landscape of media ownership.