California's New Licensing Law Impacts Digital Media Purchases

Understanding California's New Law on Digital Media Licenses

California Governor Gavin Newsom has signed a law (AB 2426) to combat “disappearing” purchases of digital games, movies, music, and ebooks.

This legislation will force digital storefronts to tell customers they’re just getting a license to use the digital media, rather than suggesting they actually own it.

Key Provisions of the Law

• When the law comes into effect next year, it will ban digital storefronts from using terms like “buy” or “purchase”, unless they inform customers that they’re not getting unrestricted access to whatever they’re buying.
• Storefronts will have to tell customers they’re getting a license that can be revoked.
• Companies that break the rule could be fined for false advertising.

Response to Industry Practices

The new law won’t apply to stores that offer “permanent offline” downloads and comes as a direct response to companies like PlayStation and Ubisoft. In April, Ubisoft started deleting The Crew from players’ accounts after shutting down servers for the online-only game.

As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important,” California Assemblymember Jacqui Irwin said in a press release. ”I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”

Impact on Consumers

While forcing storefronts to disclose that they’re just selling licenses won’t stop them from taking away digital purchases, it will at least make people more aware that what they’re buying can be taken away at any time.