A new California law now mandates that digital game marketplaces like Steam and Epic must inform players whether their purchase actually grants ownership of the game or merely a license to use it.
California Law Ensures Players Are Told Whether Game Purchases Include Ownership
Effective Starting Next Year
A recently enacted law in California requires digital storefronts to be transparent with customers about their purchases. Under this law, online stores must disclose to consumers if their transaction results in obtaining a license for the product rather than full ownership of what they paid for.
California Governor Gavin Newsom recently signed the AB 2426 legislation to enhance consumer protection and counter deceptive advertising practices for digital goods. The scope of this law includes video games and related digital applications. According to the bill, a protected "game" refers to "any application or game that a person accesses and manipulates using a specialized electronic gaming device, computer, mobile device, tablet, or other device with a display screen, including any add-ons or additional content for that application or game."
The law mandates that digital storefronts use clear and noticeable wording in their sales terms. This can involve using larger text, contrasting fonts or colors, or symbols that distinguish the text, so consumers are properly informed about the nature of their purchase.
Individuals or companies found responsible for false or misleading advertising may be subject to civil penalties or misdemeanor charges, depending on the circumstances. The act states: "Current law holds violators of specified false advertising regulations liable for civil penalties, and identifies such violations as misdemeanors."
Additionally, the law prohibits sellers from promoting or selling digital products as providing "unrestricted ownership." In legislative comments, lawmakers stressed the significance of transparency: "As markets shift increasingly to digital-only formats, consumers need to fully grasp the nature of their transactions—including the possibility that they don't truly own what they buy. Unless a digital product can be downloaded for offline use, the seller could revoke access at any time."
Taking effect next year, the California law also restricts online stores from using words like "buy" or "purchase" unless it is clearly explained to customers that the transaction does not grant full or permanent ownership.
"With retailers increasingly moving away from physical media, stronger consumer safeguards for digital purchases have become more essential than ever," stated California Assembly member Jacqui Irwin. "I applaud the Governor for signing AB 2426, which will end the practice of misleading advertising by digital media sellers that inaccurately claim consumers own their purchases."
Clarity Lacking for Subscription-Based Services
In recent years, several gaming companies—including Sony and Ubisoft—have completely taken certain games offline, making them unplayable for customers who previously bought them. This has sparked debate across the gaming community about consumer rights regarding purchases. For example, in April, Ubisoft shut down its racing game The Crew, citing "licensing constraints" among the reasons, which caused players to permanently lose access. Frequently, such shutdowns occur without advance notice from the companies.
However, the new legislation does not address subscription services like Game Pass or rental-based gaming platforms, nor does it detail policies for offline game copies—leaving these areas unclear.
Earlier this year, a Ubisoft executive suggested that players should grow "comfortable" with not owning games in the traditional sense, considering the growth of subscription models. Discussing Ubisoft’s subscription services, Philippe Tremblay, the company's director of subscriptions, told GamesIndustry.biz that a shift in player mindset is necessary as more people adopt subscription services.
"We observed that many gamers still expect to own their games, similar to how people used to collect DVDs. That mindset needs to evolve. People adapted to not owning CDs or DVDs—it's just taking longer with games," he remarked. "As players become more accustomed to this model, they'll realize they don’t lose their progress. Game saves remain intact, so you keep your achievements and in-game activities. It’s about embracing the idea of not owning the game itself."
Assemblymember Jacqui Irwin added that the law is intended to help consumers better understand what they're buying. "When someone buys a digital movie or TV show, they assume it’s theirs to keep forever, much like a DVD or a book," Irwin explained. "But in truth, they have only acquired a license, which the seller can revoke anytime based on their terms and conditions."
