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California Forces Digital Stores to Admit Customers Are Buying a License and Don’t Own The Product

A new law in California will see digital stores admitting to the fact that customers are simply buying a license for a product and don’t own it. California Governor Gavin Newsom has signed a new law AB 2426 to tackle the ongoing disappearance of digital products in the form of games, movies, music and ebooks.

The new legislation will force digital stores to tell customers they are just paying for a license rather than owning the product they spend money on. The law will see digital stores remove terms such as “buy” and “purchase” from the platform unless it clearly indicates they will always own this product.

Storefronts will also have to comply with new regulations where messaging informs the customer about license revoking. In addition, any digital restrictions that come with “renting” this license will also need to be clear before purchase.

Any storefront that doesn’t comply with this regulation will be fined for false advertising. The PlayStation Store, for example, would have to now change its wording on products to mention all restrictions and the possibility of the game being removed from your account. It would also have to find another term to use instead of “buy” when purchasing a game.

The law does have some exceptions. It won’t apply to stores that offer permanent offline downloads. But even then, these stores are hard to find. Even music license platforms such as Audiojungle allow you to download your purchased song but can remove the product on the site at any time cutting off access to further downloads.

The law comes in direct response to PlayStation and Ubisoft who have been known for deleting games and content from users. Ubisoft recently announced plans to shut down The Crew. The closure would also remove the ability to play the game and all your content.

This year, PlayStation also said it would remove purchased Discovery content from user accounts before backtracking on the announcement after heavy backlash from customers. The gaming platform also recently cut off access to Concord after the game shut down just two weeks after launch.

California Assemblymember Jacqui Irwin said in a press release:

“As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important.  thank the Governor for signing AB 2426, ensuring the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”

Of course, this new law is limited in its support for customers but hopefully, it is the start of more pro-consumer regulations in more states and countries.

Source: Digital Democracy

 

Marco is the owner and founder of GLITCHED. South Africa’s largest gaming and pop culture website. GLITCHED quickly established itself with tech and gaming enthusiasts with on-point opinions, quick coverage of breaking events and unbiased reviews across its website, social platforms, and YouTube channel.

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