California's New Law Mandates Transparency in Digital Media Purchases

California's Digital Media Licensing Law

California Governor Gavin Newsom has signed a transformative law (AB 2426) aimed at protecting consumers from misleading practices in digital media purchases. The legislation will compel digital storefronts to inform customers that they’re merely receiving a license to access the media, not full ownership.

Key Provisions of AB 2426

• The law prohibits the use of terms like buy or purchase without clear indications of licensing.
• Companies must disclose all restrictions tied to the digital licenses.
• Violators face fines for false advertising.

Consumer Impact

This law comes in response to practices from companies like Ubisoft and Sony, highlighting the urgency of consumer protections. For instance, Ubisoft's removal of The Crew from users' accounts sparked significant backlash, illuminating the perils of non-ownership.

Assemblymember Jacqui Irwin emphasized the necessity for consumer rights as the industry shifts from physical to digital media. This legislation aims to clarify that digital purchases can indeed be rescinded at any time.

While this new law won’t curb the withdrawal of access by storefronts, it plays a crucial role in raising consumer awareness about licensing structures in these transactions.