A bill (AB 2426) was passed into law by California Governor Gavin Newsom to address “disappearing” sales of digital games, movies, music, and ebooks. The law will make it mandatory for online retailers to disclose to clients that they are just obtaining a license to use digital content, as opposed to implying that they are the true owners.
The rule will prohibit digital stores from using phrases like “buy” or “purchase” when it takes effect the following year, unless they disclose to clients that the products they are purchasing are subject to restrictions on their use. Storefronts will need to notify clients that the license they are purchasing is subject to revocation and furnish them with a comprehensive description of all associated limitations. Businesses which violate the policy risk fines for using deceptive advertising.
The new regulation is a direct response to corporations like as PlayStation and Ubisoft, and it will not apply to retailers that sell “permanent offline” downloads. After bringing The Crew’s servers down in April, Ubisoft began removing users’ accounts from the online game. Additionally, Sony stated a year ago that it will take paid Discovery material out of players’ PlayStation libraries before reversing course.
California Assemblymember Jacqui Irwin stated in a news release that “the need for consumer protections on the purchase of digital media has become increasingly more important as retailers continue to pivot away from selling physical media.” “I appreciate the Governor’s signing of AB 2426, which will put an end to the false and misleading advertising that falsely claims consumers own their purchases from sellers of digital media.”
Stores will still be able to take away digital purchases even if they are forced to declare that they are only selling licenses; at the very least, customers will be more aware that what they are purchasing may be taken away at any time.
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