California cracks down on ‘misleading’ online purchases with AB 2426

The state of California has passed a law, AB 2426, which will see stricter regulations around the sale of digital media. It builds on existing false advertising laws and includes games, films, books, and music.

Online shops will now have to make it clear that customers are just buying a license to the product. They do not own it outright if it is an online download.

Governor Gavin Newsom signed the bill into law earlier this week (Sept. 24) and it will come into effect in 2025.

Why was AB 2426 passed?

The bill was passed to curb the concerning trend of disappearing digital media. Earlier this year, publisher Ubisoft closed down the servers for its racing game The Crew. It was then removed from users’ accounts.

This is just one in a long line of recent shutdowns in the industry. Forza Horizon 4 will be delisted in December. Hood: Outlaws & Legends will be unplayable by February with no refunds offered.

While the legislation won’t stop this practice, it hopes it will make this possibility clear to customers at the point of sale. Online shops will no longer be allowed to use the words “buy” or “purchase” if they do not make it clear that it is just the licensing of the product for sale, not “unrestricted ownership”.

Customers will also have to understand that the license could be revoked in the future before making their transaction.

Assembly member Jacqui Irwin authored the bill. She said earlier this month: “As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important.

“AB 2426 will ensure the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”

The bill will not fix the issue of companies terminating games and other media whenever they feel like it. But at least this transparency can better help consumers make informed purchases.

Feature image credit: Canva

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