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 via various devices, including add-ons and additional content.

To ensure clarity, the law requires prominent and easily discernible language in sales agreements. This includes using larger or contrasting font sizes and colors, or setting off the text with symbols. Failure to comply may result in civil penalties or misdemeanor charges.

The legislation prohibits advertising or selling digital products as offering "unrestricted ownership" unless explicitly stated otherwise. It acknowledges that sellers can revoke access to digital goods at any time, unless they're downloadable for offline viewing. The law also restricts the use of terms like "buy" or "purchase" unless ownership is clearly defined.

Assemblymember Jacqui Irwin emphasized the importance of consumer protection in the shift towards digital-only marketplaces. She highlighted the common misconception that purchasing digital goods grants permanent ownership, similar to physical media.

Subscription Services Remain Unclear

The law's impact on subscription services like Game Pass remains undefined. It doesn't address "renting" digital products or offline game copies. This ambiguity follows recent controversies where companies like Ubisoft have taken games offline, leaving players without access to purchased titles.

A Ubisoft executive previously suggested players should adapt to the concept of not "owning" games in the traditional sense, given the rise of subscription models. However, AB 2426 aims to empower consumers by ensuring they understand the nature of their digital purchases. The law seeks to prevent deceptive practices and provide greater clarity regarding ownership rights in the evolving digital landscape.