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A new state law in California now requires digital storefronts to inform buyers that they are purchasing a license for digital products—not full ownership. The law aims to prevent misleading terms like “buy” unless customers are explicitly told their purchase grants a temporary license, which may expire at any time.

California Governor Gavin Newsom recently signed AB 2426, a bill focused on boosting transparency in the sale of digital goods. Assembly member Jacqui Irwin highlighted the significance of this law, noting that as physical media sales decline, consumer protection for digital purchases is becoming increasingly important.

“False advertising by digital retailers, suggesting consumers own their purchases, must stop,” Irwin said. “I appreciate the Governor’s support in ensuring AB 2426 eliminates deceptive practices.”

The issue has gained momentum in light of high-profile game removals, which left customers without access to titles they had paid for. Ubisoft faced backlash earlier this year when it delisted and took The Crew offline just a year after discontinuing sales of the game.

Stéphane Beley, the senior creative director at Ivory Tower, responded to these concerns, pledging long-term support for newer titles like The Crew 2 and The Crew Motorfest. Beley confirmed they are working on offline modes to guarantee continued access for players.

Ubisoft previously explained that The Crew’s decommissioning on March 31, 2024, was due to server infrastructure and licensing challenges. “While we understand this decision may disappoint some players, it is necessary after nearly a decade of game support,” Ubisoft said.

The introduction of AB 2426 is a critical step toward consumer protection as the industry shifts further toward digital distribution. This new state law in California ensures customers are fully aware of the temporary nature of their digital purchases and reduces the risk of deceptive practices by online retailers.

Via: TheVerge

One response to “New State Law in California Mandates Digital Storefronts to Clarify Product Ownership!”

  1. […] change follows California Governor Gavin Newsom’s signing of AB 2426, a law requiring digital storefronts to avoid using terms like “buy” unless it is explicitly […]

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