California's New Law Clarifies 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, aims to combat misleading advertising of digital goods, including video games and related applications. It requires stores to use easily visible language, specifying the nature of the transaction – license versus ownership – in prominent text. Failure to comply could result in civil penalties or misdemeanor charges.

The legislation prohibits using terms like "buy" or "purchase" without explicitly clarifying that it doesn't equate to unrestricted access or ownership. This addresses concerns arising from instances where gaming companies have removed games from players' access, often without warning, due to licensing issues or other reasons.

Assemblymember Jacqui Irwin highlighted the importance of consumer understanding: purchases often create the impression of permanent ownership, similar to physical media, while actually granting only a license revocable by the seller.

Subscription services like Game Pass remain outside the scope of this law, leaving their implications for ownership unclear. The law also doesn't explicitly address offline game copies. This ambiguity reflects the ongoing evolution of the digital gaming market.

A Ubisoft executive previously suggested a shift in consumer expectations towards accepting the lack of technical ownership in the context of subscription models. However, AB 2426 prioritizes consumer awareness of the nature of their digital purchases, aiming for greater transparency in the gaming industry.