Steam, Epic Disclose Ownership Rights in Platform Gaming

California's New Law: Clarifying Digital Game Ownership

A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Effective next year, AB 2426 requires these platforms to clearly state whether a purchase grants ownership or merely a license.

The law aims to combat misleading advertising of digital goods, including video games and associated applications. It specifies that stores must use clear and prominent language, such as larger or contrasting text, to inform consumers about the nature of their purchase.

Failure to comply could result in civil penalties or misdemeanor charges. The law explicitly prohibits advertising "unrestricted ownership" unless the digital good is downloadable for offline access. Terms like "buy" or "purchase" can only be used if unrestricted access is genuinely provided.

Assemblymember Jacqui Irwin emphasized the importance of consumer protection in the shift towards digital-only marketplaces. She highlighted the common misconception that purchasing digital goods equates to permanent ownership, similar to physical media. In reality, consumers often only acquire a license that can be revoked by the seller.

The law's impact on subscription services like Game Pass remains unclear, as does its application to offline game copies. This ambiguity follows comments from a Ubisoft executive suggesting players should accept the lack of true game ownership in the context of subscription models.

This debate is fueled by past incidents where games were taken offline, leaving players without access despite prior purchases. The new law seeks to prevent such situations by ensuring consumers are fully informed about the nature of their digital transactions.

In essence, AB 2426 represents a significant step towards greater consumer protection and transparency in the digital game market, although some areas still require clarification.