California mandates digital stores to clarify content licensing

In response to growing concerns about consumer rights in the digital marketplace, California has introduced a significant piece of legislation known as AB 2426. Signed by Governor Gavin Newsom, this law aims to combat misleading practices by digital storefronts that suggest consumers own the digital content they purchase. Instead, the law mandates that these stores clarify that customers are only acquiring licenses to use the content, which can be revoked at any time. The legislation specifically prohibits the use of terms like 'buy' or 'purchase' unless accompanied by a clear disclosure of the limitations associated with the license. This move comes as a direct response to incidents where companies like Ubisoft and Sony have removed access to purchased digital content, raising alarms about the security of digital purchases. California Assemblymember Jacqui Irwin emphasized the importance of consumer protections as the market shifts away from physical media. The law aims to ensure that consumers are fully informed about the nature of their digital purchases, thereby reducing the risk of false advertising. While the law will not prevent companies from revoking access to digital content, it will enhance consumer awareness regarding the precarious nature of digital ownership. The new regulations will take effect next year, marking a significant step towards greater transparency in the digital marketplace.