California's New Law Mandates Transparency in Digital Game Sales

A landmark law in California will reshape the digital game marketplace by requiring platforms like Steam and Epic Games to clarify the nature of game purchases. Effective next year, AB 2426 mandates that digital storefronts explicitly inform consumers whether they are purchasing a license or actual ownership of a game. This move aims to combat misleading advertising and protect consumers from unexpected loss of access to purchased games.

The legislation defines "game" broadly, encompassing applications accessed via various devices and including add-ons or additional content. To ensure clarity, the law specifies that the disclosure must be prominently displayed using clear and conspicuous text, potentially in a larger font size, contrasting color, or distinct formatting. Failure to comply could result in civil penalties or misdemeanor charges.

The law directly addresses the common misconception that purchasing a digital game grants unrestricted ownership. It prohibits the use of terms like "buy" or "purchase" unless accompanied by a clear statement clarifying that the transaction doesn't equate to outright ownership. The act explicitly acknowledges that digital goods, unlike physical media, can be revoked by the seller at any time.

Assemblymember Jacqui Irwin championed the bill, highlighting the increasing importance of consumer protection in the digital marketplace. She emphasized the common misunderstanding that digital purchases grant permanent ownership, similar to physical media like DVDs or books. The law aims to bridge this gap in consumer understanding.

However, the law's impact on subscription-based services like Game Pass remains unclear. The legislation doesn't specifically address subscription models or "renting" digital products, leaving these aspects open to interpretation. Similarly, the implications for offline copies of games are not explicitly defined.

This legal development follows incidents where gaming companies, such as Ubisoft, have removed games from availability, leaving players who had purchased them without access. Ubisoft's recent comments advocating for a shift towards subscription models, where players don't technically "own" games, highlight the ongoing debate surrounding consumer rights in the digital gaming landscape. AB 2426 represents a significant step towards greater transparency and consumer protection in this evolving market.