A new Californian law will come into effect in 2025 that will effectively force digital storefronts to disclose that buyers don’t actually own their digital puchases, but rather simply licensing the content.
Naturally, we suspect that most of our audience will already be aware of this, but it’s entirely possible that more casual gamers will not be privy to the way that digital storefronts function. Effectively, then, as reported by The Verge (thanks, Time Extension) digital storefronts will be restricted from using the words “buy, purchase, or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good or alongside an option for a time-limited rental.”
Unless, that is, that they expressly disclose that users are licensing the content. This disclosure includes ensuring customers are informed that licenses can be revoked at any time and that certain restrictions to purchases may apply. Any violations of this law may result in fines for false advertising.
California Assembly member and bill author Jacqui Irwin stated:
“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. I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.“
Of course, publishers can still revoke access to content at the drop of a hat if they so desire, but this law at least ensures that customers are aware of this potential outcome ahead of time. We can’t be certain if this law will have ripple effects to other regions, but we suspect that if companies like Nintendo, Sony, and Microsoft are forced to change the wording in their respective storefronts, it will be done on a global scale.
A new Californian law will come into effect in 2025 that will effectively force digital storefronts to disclose that buyers don't actually own their digital puchases, but rather simply licensing the content.
Naturally, we suspect that most of our audience will already be aware of this, but it's entirely possible that more casual gamers will not be privy to the way that digital storefronts function. Effectively, then, as reported by The Verge (thanks, Time Extension) digital storefronts will be restricted from using the words "buy, purchase, or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good or alongside an option for a time-limited rental."
Unless, that is, that they expressly disclose that users are licensing the content. This disclosure includes ensuring customers are informed that licenses can be revoked at any time and that certain restrictions to purchases may apply. Any violations of this law may result in fines for false advertising.
California Assembly member and bill author Jacqui Irwin stated:
"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. I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past."
Of course, publishers can still revoke access to content at the drop of a hat if they so desire, but this law at least ensures that customers are aware of this potential outcome ahead of time. We can't be certain if this law will have ripple effects to other regions, but we suspect that if companies like Nintendo, Sony, and Microsoft are forced to change the wording in their respective storefronts, it will be done on a global scale.
