A New California Law Will Require Digital Storefronts To Disclose That The Buyer Doesn't Actually Own Their Digital Purchase

Tech

Sep 29

With reports of consumer digital media purchases being arbitrarily removed by media retailers such as Sony, as well as various businesses such as Best Buy ending the availability of physical media in their storefronts, California Governor Gavin Newsom has signed into law a measure designed to help protect consumers regarding their digital media purchases. The new law, AB2426, will “prohibit storefronts from using the words "buy, purchase, or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good or alongside an option for a time-limited rental."

In other words, while the law does not protect consumers from losing access to their purchased digital content, the law would at least provide more transparency surrounding consumer purchases of digital media content.

“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,” California Assembly member and bill author Jacqui Irwin said in a statement. “I 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."

The law goes into effect next year and violations thereof will result in a fine for false advertising. The law does not apply to content that can be permanently downloaded or storefronts that state “in plain language” that you are only licensing the digital content and that the license can expire at any time.

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