California's New Law Clarifies Digital Game Ownership

A new California law, AB 2426, 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 combats misleading advertising by requiring clear and conspicuous language, specifying that terms like "buy" or "purchase" cannot imply unrestricted ownership unless explicitly stated otherwise. Failure to comply could result in civil penalties or misdemeanor charges.

The legislation defines "game" broadly, encompassing applications accessed via various devices, including add-ons and DLC. It emphasizes that unless a digital good is downloadable for offline access, the seller retains the right to revoke access.

Assemblymember Jacqui Irwin highlighted the importance of consumer understanding, noting the common misconception that digital purchases grant permanent ownership, similar to physical media. She emphasized that the law aims to clarify that, in most cases, a purchase grants a license, subject to the seller's terms.

Uncertainties Remain:

The law's impact on subscription services like Game Pass remains unclear. It doesn't address the issue of offline copies or "renting" digital products, leaving these aspects undefined.

Recent incidents, such as Ubisoft's removal of The Crew series, underscore the need for consumer protection. While a Ubisoft executive previously suggested gamers should adapt to the concept of not "owning" games in the traditional sense, this law seeks to prevent such situations by ensuring informed consent.

This California law represents a significant step toward greater transparency and consumer protection in the digital gaming marketplace. However, further clarification is needed regarding the nuances of subscription models and offline access.