September 26th, 2024

New California law will force companies to admit you don't own digital content

California's AB 2426 law, effective in 2025, clarifies that digital content purchases are licenses, not ownership, aiming to prevent misleading language in transactions and enhance consumer protections.

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New California law will force companies to admit you don't own digital content

California Governor Gavin Newsom has signed AB 2426, a law aimed at clarifying the nature of digital content ownership for consumers. Starting in 2025, digital marketplaces will be required to inform customers that when they purchase digital media—such as video games, music, movies, and ebooks—they are actually acquiring a license to access the content rather than owning it outright. This law does not apply to permanent offline downloads, but it addresses concerns about ownership and access in the digital age, particularly in light of incidents where consumers lose access to content they believed they owned, such as Ubisoft's removal of "The Crew" from players' libraries after the game's servers were shut down. The law aims to prevent misleading language like "buy" or "purchase" in digital transactions, potentially subjecting companies to fines for false advertising. This legislative move is part of a broader effort by the state to enhance consumer protections, which also includes a "click to cancel" bill and measures against unauthorized AI likenesses of individuals.

- California's AB 2426 law clarifies that digital content purchases are licenses, not ownership.

- The law will take effect in 2025 and targets digital marketplaces.

- It aims to prevent misleading language in digital transactions.

- The law does not cover permanent offline downloads.

- This legislation is part of broader consumer protection efforts in California.

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