New California Law Ensures Consumers Know If They Own Digital Content or a License

California Governor Gavin Newsom has signed Assembly Bill 2426 into law, which mandates that digital retailers clearly disclose to consumers whether they are purchasing a license to use digital content or actually owning it. This legislation, set to take effect on January 1, 2025, aims to address the issue of “disappearing” digital purchases, such as games, movies, music, and ebooks.

California’s new law goes after ‘disappearing’ digital media https://t.co/o7j6ROxr1q

— The Verge (@verge) September 26, 2024

Under the new law, digital storefronts will be prohibited from using terms like “buy” or “purchase” unless they explicitly inform customers that they are acquiring a revocable license rather than an unrestricted ownership interest. This requirement is intended to prevent misleading advertising and ensure consumers are aware that their access to digital content can be revoked at any time. The law will not apply to products that can be permanently downloaded and stored offline.

This move comes in response to growing concerns about consumer rights in the digital media space, where companies like Ubisoft and Sony have previously removed purchased content from users’ libraries. The law seeks to enhance transparency and consumer protection as the market continues to shift away from physical media.

Via The Verge