California has enacted legislation mandating digital game platforms like Steam and Epic Games to disclose whether purchased games confer actual ownership rights.
California Mandates Transparency About Digital Game Ownership Rights
Effective Starting Next Year
A newly passed California law requires digital marketplaces to clearly specify whether transactions grant product licenses rather than permanent ownership. Governor Gavin Newsom recently signed AB 2426 into law to curb deceptive marketing practices surrounding digital goods, including video games.
The legislation defines protected "games" as any interactive application accessible through gaming devices, computers, or mobile platforms, including downloadable content. Retailers must display ownership disclosures prominently - using larger font sizes, contrasting colors, or visual markers to ensure visibility.
Violators face civil penalties or misdemeanor charges for misleading advertising. The law specifically prohibits sellers from claiming "unrestricted ownership" for digitally licensed content. Legislative notes emphasize this protection grows increasingly vital as markets transition toward digital-only distribution.
Starting next year, platforms must avoid terms like "buy" or "purchase" unless explicitly clarifying these transactions don't guarantee permanent access. Assemblymember Jacqui Irwin highlighted this addresses longstanding consumer confusion between digital licenses and physical ownership rights.
Uncertainty Remains Regarding Subscription Services
The legislation doesn't explicitly cover game subscription models like Xbox Game Pass or temporary rentals. This gap follows recent controversies when companies like Ubisoft withdrew access to delisted titles like The Crew without warning.
Ubisoft's subscription director Philippe Tremblay recently argued players should adapt to not "owning" games, comparing it to the music industry's shift from CDs to streaming. However, Irwin clarified the law focuses on ensuring consumers understand digital purchases typically constitute revocable licenses rather than perpetual ownership.
Tremblay noted gamers' progress data remains safe despite not owning game files, contrasting with revoked streaming content. The legislation aims to eliminate ambiguity surrounding digital ownership while allowing market evolution toward subscription models.
