New California Law Forces Digital Stores to Admit You’re Just Licensing Content, Not Owning It

California is taking bold steps with a new law that changes how digital purchases are sold. Starting next year, digital storefronts will have to be more transparent about what you’re really buying when you purchase a game, movie, music or ebook. No more pretending you’re buying something to keep forever when, in reality, you’re just getting a license that can vanish.

Governor Gavin Newsom has signed a new law called AB 2426, which requires digital stores to avoid using terms like “buy” or “purchase” unless they clearly state that consumers are only getting a license for the digital content. This law aims to ensure that consumers understand companies can take away their digital media at any time, without warning. Companies who fail to comply could face charges for false advertising.

This law comes after incidents like Ubisoft’s removal of The Crew from players’ libraries, which showed the need for stronger consumer protections. Assembly member Jacqui Irwin, who wrote the bill, highlighted the need for honesty in digital sales, saying, “I thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”

While the new law won’t stop companies from pulling your digital purchases, it will force them to be upfront about the fact that your purchase is actually a license. This change is likely to affect how people think about and buy digital products in the future.

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Thanks, The Verge!

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