Steam, Epic: No Game Ownership Claimed

A new California law mandates digital game stores, like Steam and Epic Games, to inform consumers whether a purchased game grants them ownership.

California Law Ensures Players Know If Purchases Grant OwnershipTakes Effect Next Year

A new California law mandates digital storefronts to be transparent about purchases. The new law compels online stores to inform consumers whether transactions grant a license—not ownership—of the purchased product.

California Governor Gavin Newsom recently signed AB 2426 to better protect consumers and curb deceptive digital goods advertising. This law encompasses video games and related digital applications. The bill defines "game" as "any application or game accessed and manipulated using a specialized electronic gaming device, computer, mobile device, tablet, or other device with a display screen, including add-ons or additional content."

Accordingly, the law mandates digital storefronts to use clear and prominent wording in sales provisions, such as "larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks," to inform consumers.

Those who are found guilty of fraudulent or deceptive advertising may face civil penalties or a misdemeanor charge, depending on the circumstances. "Existing law makes a person who violates specified false advertising provisions liable for a civil penalty, as specified," the act reads, "and provides that a person who violates those false advertising provisions is guilty of a misdemeanor."

Additionally, it prohibits a seller from advertising or selling digital products that claim "unrestricted ownership" of the digital good. "As we move toward an increasingly digital-only marketplace, it is crucial that consumers clearly know and understand the nature of their transactions," the legislators wrote in the bill comment in relation to the importance of informing consumers. "This includes the reality that they may not have true ownership of their purchase. Unless the digital good has been offered for download so it can be viewed offline, the seller can remove access from the consumer at any point in time."

The California law takes effect next year, and will also forbid online vendors from employing certain phrases that might imply unlimited possession of the digital assets, such as terms like "buy" or "purchase," unless shoppers are clearly and explicitly advised that the "purchase" doesn't signify unrestricted access or possession of the product.

"As retailers increasingly shift from selling physical media, the necessity for consumer safeguards on the acquisition of digital media has grown significantly," California Assembly member Jacqui Irwin stated. "I appreciate the Governor signing AB 2426, ensuring the misleading and deceptive advertising by sellers of digital media falsely claiming consumers own their acquisitions becomes obsolete."

Provisions on Subscription-Based Services Remain Unclear

In recent years, several gaming firms, like Sony and Ubisoft, have deactivated some titles, preventing access for players who purchased them. This has sparked debate within the gaming community concerning consumer rights. One example was Ubisoft's April shutdown of The Crew racing game series after delisting it. Ubisoft cited "licensing restrictions" for The Crew's removal, resulting in player access loss. This often occurs without notice.

However, the new law omits subscription services like Game Pass, or "rental" digital products, and lacks specifics on offline game copies—leaving ambiguities.

In January, a Ubisoft executive suggested players should accept not technically "owning" games, referencing the rise of subscriptions. Discussing Ubisoft's subscription services launch, Philippe Tremblay, the company's director of subscriptions, told GamesIndustry.biz a shift towards subscriptions is needed as players become more accustomed to them.

"One of the things we observed is that gamers are accustomed to, somewhat like DVDs, possessing and owning their games. That's the consumer shift required. They became comfortable not owning their CD or DVD collections. That's a transformation that's been somewhat slower [in games]," he stated. "As gamers become comfortable in that regard… you don't lose your progress. If you resume your game later, your progress file remains. That's not been erased. You don't lose what you've achieved in the game or your engagement. So it's about feeling at ease with not owning your game."

In addition to his remarks, Assemblymember Jacqui Irwin further stated that the new law is intended to help consumers better understand their purchases. "When a consumer buys an online digital good such as a movie or TV show, they receive the ability to view the media at their convenience. Often, the consumer believes that their purchase grants them permanent possession of that digital good, akin to how buying a movie on DVD or a paperback book provides perpetual access," Irwin said. "In actuality, however, the consumer has only purchased a license, which, per the seller's terms and conditions, the seller can withdraw at any time."