Gaming Platforms Acknowledge Legalities on Digital Ownership

California's New Law: Clarity on 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), signed by Governor Gavin Newsom, aims to combat misleading advertising of digital goods. It defines "game" broadly, encompassing applications accessed on various devices, including add-ons and DLC. The legislation requires clear and conspicuous language—larger font, contrasting colors, or distinct symbols—to inform consumers about the nature of their purchase.

Violations could result in civil penalties or misdemeanor charges. The law also prohibits advertising digital products as offering "unrestricted ownership" unless this is genuinely the case. The bill's authors emphasize the need for consumer protection in an increasingly digital marketplace, highlighting the potential for sellers to revoke access at any time, unless the product is downloadable for offline use.

The law prohibits using terms like "buy" or "purchase" to imply unrestricted ownership without explicit clarification. Assemblymember Jacqui Irwin stated the law aims to prevent deceptive practices and ensure consumers understand they are often buying licenses, not outright ownership.

Subscription Services and Offline Copies Remain Unclear

The law's impact on subscription services like Game Pass remains undefined. Similarly, it lacks specifics on offline game copies. This ambiguity follows recent controversies where companies like Ubisoft have removed games from access, citing licensing issues. A Ubisoft executive previously suggested players should accept the concept of not "owning" games in the context of subscription models.

Assemblymember Irwin clarified that the law seeks to improve consumer understanding of digital purchases, drawing a parallel to the perceived permanence of owning physical media like DVDs or books, contrasting with the reality of revocable digital licenses.