Steam, Epic Required to Acknowledge Limited Game Ownership

California's New Law Mandates Transparency in Digital Game Ownership

A new California law, effective next year (AB 2426), forces digital game stores like Steam and Epic Games to clarify whether purchases grant ownership or merely licenses. This legislation, signed by Governor Gavin Newsom, combats deceptive advertising of digital goods, including video games and related applications. The law defines "game" broadly, encompassing applications accessed via various electronic devices.

The law mandates clear and conspicuous language in sales agreements, specifying whether the purchase confers ownership or a license. This includes using distinct typography or formatting to highlight the ownership details. Failure to comply may result in civil penalties or misdemeanor charges. The law also prohibits advertising digital goods as offering "unrestricted ownership" unless this is explicitly true. The legislation aims to protect consumers from the misconception that digital purchases equate to outright ownership, as sellers retain the right to revoke access at any time.

Assemblymember Jacqui Irwin emphasized the importance of consumer understanding, noting the common belief that digital purchases provide permanent access, similar to physical media. However, she highlighted that often only a license is granted, subject to the seller's terms and conditions. The law aims to rectify this informational gap.

While the law significantly improves transparency, it doesn't address subscription services like Game Pass or the implications for offline game copies. The ambiguity surrounding subscription models remains. This lack of clarity follows comments by a Ubisoft executive suggesting gamers should become accustomed to not "owning" games in the traditional sense, given the rise of subscription-based services. The debate continues regarding consumer rights and ownership in the digital gaming landscape.