Valve and Epic Face Consumer Backlash Over Game Ownership Claims

California's New Law: Clarifying Digital Game Ownership

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

The law, AB 2426, aims to combat deceptive advertising of digital goods, including video games and related applications. It defines a "game" broadly, encompassing applications accessed via various devices. The law specifies that crucial information about ownership must be presented clearly and conspicuously, using larger or contrasting text, font, or color to ensure readability.

Violations could result in civil penalties or misdemeanor charges. The law prohibits advertising or selling digital products as offering "unrestricted ownership" unless that claim is explicitly true. Legislators emphasized the need for consumer clarity, noting that digital purchases often grant licenses, not outright ownership, and access can be revoked by the seller.

The law also restricts the use of terms like "buy" or "purchase" unless consumers are informed that the transaction doesn't equate to unrestricted access or ownership. Assemblymember Jacqui Irwin highlighted the growing importance of consumer protection in the digital marketplace, aiming to end misleading claims about ownership of digital purchases.

Subscription services and offline game copies remain unclear under this legislation. Recent instances of games being taken offline by companies like Ubisoft have fueled discussions about consumer rights. A Ubisoft executive previously suggested that players should adapt to the idea of not technically owning games in the context of subscription models.

Assemblymember Irwin clarified that the law aims to provide consumers with a complete understanding of their purchases, contrasting the perceived permanence of ownership with the reality of license agreements that can be revoked. This new law represents a significant step towards greater transparency and consumer protection in the digital gaming market.