California's New Law Clarifies 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, encompassing applications accessed on various devices. The law requires stores to use prominent language ("larger type than the surrounding text, or in contrasting type, font, or color...") to inform consumers.

Violation of the law carries potential civil penalties or misdemeanor charges. The law also prohibits advertising digital products as offering "unrestricted ownership" unless this is truly the case. Legislators emphasized the need for clarity, noting that sellers can revoke access to licensed digital goods at any time.

The law prohibits using terms like "buy" or "purchase" to imply unrestricted ownership without explicit clarification. Assemblymember Jacqui Irwin highlighted the increasing importance of consumer protection in the digital marketplace, aiming to end deceptive advertising practices.

Subscription Services and Offline Copies Remain Unclear

The law's impact on subscription services (like Game Pass) and offline game copies is currently undefined. This ambiguity follows incidents where companies like Ubisoft have removed games from players' access, citing licensing issues. A Ubisoft executive previously suggested that players should adapt to the idea of not "owning" games in the traditional sense, given the rise of subscription models.

Assemblymember Irwin clarified that the law seeks to ensure consumers understand the nature of their purchases, acknowledging the common misconception that digital purchases grant permanent ownership similar to physical media.

This new legislation represents a significant step toward greater consumer protection in the digital gaming sphere, though some areas require further clarification.