Gaming Giants Face Transparency Challenge: Platforms Admit Limited Ownership

California's New Law Clarifies Digital Game Ownership

A new California law, effective next year, mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. The law, AB 2426, requires these platforms to clearly state whether a purchase grants ownership or merely a license to use the game.

The legislation aims to combat misleading advertising of digital goods. It defines "game" broadly, encompassing applications accessed on various devices, including add-ons and additional content. The law specifies that clear and conspicuous language must be used to inform consumers, employing larger or contrasting font sizes and styles to highlight the distinction between ownership and licensing.

Violations could result in civil penalties or misdemeanor charges. The law also prohibits advertising digital products as offering "unrestricted ownership" unless this is truly the case. Legislators emphasized the need for consumer protection in an increasingly digital marketplace, noting that licenses can be revoked by the seller at any time.

The law prohibits the use of terms like "buy" or "purchase" unless consumers are explicitly informed that the transaction doesn't grant unrestricted access or ownership. Assemblymember Jacqui Irwin highlighted the importance of clarifying the nature of digital purchases, contrasting them with the permanent ownership associated with physical media like DVDs or books.

Subscription services and offline game copies remain largely unaddressed by the new law. This ambiguity follows recent controversies where companies like Ubisoft removed access to games, raising concerns about consumer rights. A Ubisoft executive previously suggested that players should become accustomed to not technically "owning" games in the subscription model era. However, Assemblymember Irwin reiterated the law's goal of ensuring consumers understand exactly what they are paying for.

This new California law represents a significant step towards greater transparency and consumer protection in the digital game market. While some aspects remain unclear, it undoubtedly shifts the onus onto digital stores to clearly define the terms of their sales.