A new California law requires online game providers to inform consumers that purchasing digital games does not equate to ownership, but rather a revocable license. Starting in 2025, terms like ‘buy’ will be banned in digital sales, enhancing transparency regarding digital products. This law aims to protect consumers as the industry increasingly shifts towards digital-only sales. While physical copies offer more permanence, digital licenses can be revoked, leading to potential misunderstandings about ownership rights.
New California Law on Digital Game Ownership
In California, a groundbreaking law is set to take effect next year, mandating that online providers clarify to consumers that when they buy digital games, they do not truly own them. Instead, they are granted a license to access the content, which can be revoked by the game provider at any moment. This shift aims to improve transparency in a market where consumers often misunderstand their rights regarding digital products.
Changes in Terminology and Consumer Awareness
Under the new regulations, terms like ‘buy’ and ‘purchase’ will be strictly prohibited in digital offerings. While some consumers may be aware that they are only obtaining a usage license for digital software, many still harbor misconceptions. Starting in 2025, digital providers must explicitly inform customers that they are not gaining full ownership rights, but rather a limited, lease-like agreement. This law seeks to prevent misleading advertising and ensure customers understand the nature of their transactions. Violating this law could result in significant fines for companies that fail to comply.
The bill’s initiator, Jacqui Irwin, emphasizes the importance of consumer protection in a world increasingly moving away from physical media. With the governor’s support for AB 2426, misleading marketing practices will be curtailed, reinforcing the notion that consumers do not possess permanent ownership of digital products. As the landscape of game distribution evolves, players must adapt to the reality that their digital licenses can vanish at any time.
While physical purchases offer a sense of permanence and value, digital purchases come with risks. Unlike digital licenses, physical copies of video games can’t simply disappear, allowing owners to resell them if desired and recoup some of their investment. Unfortunately, the trend is shifting towards digital-only sales, as seen with the PS5 Pro being offered without a disc drive. This move reflects a broader industry desire to transition away from physical distribution.
Nevertheless, physical media is not without its challenges. Limited access to online services can hinder updates and functionality, with many games requiring significant downloads post-purchase. The days of owning a complete and fully functional game with a cartridge are fading. As game complexities increase, manufacturers may sell incomplete products, further complicating ownership issues. Despite these drawbacks, owning a physical copy still holds more intrinsic value than a digital license.
As for the potential expansion of this law beyond California, it remains uncertain. However, major companies like Microsoft, Nintendo, and Sony may adopt similar practices globally once they are required to comply in one region. The reality persists that regardless of location, ‘purchased’ software does not equate to ownership, and providers maintain the authority to revoke access at their discretion.