Steam, Epic: No Game Ownership Claims

A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership.

California Law Clarifies Digital Game Ownership

Effective Next Year

A landmark California law, AB 2426, signed by Governor Gavin Newsom, requires online stores to clearly state whether a purchase grants ownership or a license to use digital products, including video games and applications. The law defines "game" broadly, encompassing applications accessed via various devices and their associated content.

To ensure clarity, the law mandates the use of prominent, easily noticeable text and language—larger font size, contrasting colors, or distinct symbols—to inform consumers about the nature of their purchase.

Violations of the law, categorized as false or misleading advertising, can result in civil penalties or misdemeanor charges. The law explicitly prohibits advertising or selling digital goods as providing "unrestricted ownership" unless this is demonstrably true. Legislators emphasized the importance of informing consumers that digital purchases often grant licenses, not ownership, especially since access can be revoked at any time unless the product is downloadable for offline use.

Taking effect next year, the law also restricts the use of terms like "buy" or "purchase" unless explicitly clarified that the transaction doesn't imply unrestricted access or ownership. Assemblymember Jacqui Irwin highlighted the growing need for consumer protection in the digital marketplace, aiming to prevent deceptive advertising that misrepresents the nature of digital purchases.

Subscription Services Remain Unclear

Recent incidents, such as Ubisoft's removal of The Crew series, have underscored concerns about consumer rights when games are taken offline after purchase. While AB 2426 addresses ownership clarity, it doesn't explicitly address subscription services like Game Pass or the implications for offline game copies, leaving some aspects undefined.

Ubisoft's director of subscriptions, Philippe Tremblay, previously suggested a shift in consumer expectations towards accepting subscription models, suggesting gamers need to become comfortable with not technically "owning" games.

Assemblymember Irwin emphasized that the law seeks to provide consumers with a comprehensive understanding of their purchases, drawing a parallel to the perceived permanence of ownership when buying physical media like DVDs or books. She clarified that, in reality, digital purchases often grant licenses that can be revoked by the seller.