California Law Forces Stores to Reveal Digital Purchase Truth

California's new law, AB 2426, aims to enhance transparency regarding digital media ownership, particularly in video games. Signed by Governor Gavin Newsom, the legislation prohibits retailers from using terms that imply unrestricted ownership of digital goods. This law comes in response to frustrations over the disappearing digital content, like Ubisoft's "The Crew," which was removed from players' libraries after its online services were shut down. Under this law, storefronts must clarify that consumers are only licensing digital content, which could expire. Violators may face penalties for false advertising starting next year, promoting clearer communication about digital media purchases.

California's new digital media law means that digital game owners will be better informed about their purchases, as retailers must clarify that they are licensing rather than owning the content. This shift aims to reduce deceptive practices and ensure consumers understand the potential for losing access to digital games.

The legislation addresses ongoing concerns over digital ownership that have been highlighted by incidents like Ubisoft's decision to take "The Crew" offline, effectively stripping access from users who purchased the game. This situation exemplifies the broader issue of digital rights in an era increasingly dominated by online distribution and streaming services, where ownership is often ambiguous.