California Governor Gavin Newsom has signed a new law (AB 2426) aimed at addressing the issue of “disappearing” digital purchases, such as games, movies, music, and ebooks.
The legislation mandates that digital storefronts clearly inform customers that they are only acquiring a license to use digital content, rather than misleading them into thinking they actually own it.
When the law takes effect next year, it will prohibit digital storefronts from using terms like “buy” or “purchase” unless they clarify that customers are not receiving unlimited access to the content.
Storefronts will be required to inform customers that the license can be revoked and provide a detailed list of any restrictions that apply.
Companies that fail to comply with these rules could face penalties for false advertising.
This legislation won’t apply to stores that offer “permanent offline” downloads. It is a direct response to actions by companies like PlayStation and Ubisoft.
In April, Ubisoft began removing The Crew from players’ accounts after shutting down servers for the online-only game.
Similarly, last year, Sony initially announced plans to remove purchased Discovery content from PlayStation libraries before reversing the decision.
“As retailers shift away from selling physical media, consumer protections for digital purchases have become increasingly necessary,” California Assemblymember Jacqui Irwin said in a press release.
“I appreciate the Governor signing AB 2426 to put an end to the false and deceptive advertising that misleads consumers into thinking they own their digital purchases.”
While requiring storefronts to disclose that they are selling licenses won’t prevent them from revoking digital purchases, it will at least ensure that consumers are more aware that what they are buying can be taken away at any time.
