Steam, Epic Required to Admit You Don't \"Own\" Games on Their Platforms

A new California law mandates that digital game stores like Steam and Epic Games clarify whether purchases grant ownership or merely licensing.

California Law Clarifies Digital Game Ownership

Effective Next Year

A new California law requires digital storefronts to transparently disclose whether purchases grant ownership or a license to use digital products, including video games and applications. Governor Gavin Newsom signed AB 2426 to protect consumers from misleading advertising. The law defines "game" broadly, encompassing applications accessed via various electronic devices, including add-ons and additional content.

The law mandates clear and conspicuous language, specifying larger or contrasting type, font, or color, to inform consumers.

False advertising violations can result in civil penalties or misdemeanor charges. The law prohibits advertising or selling digital products as offering "unrestricted ownership" unless explicitly stated otherwise. Legislators emphasized the need for consumer clarity, noting that sellers can revoke access to digital goods at any time unless downloaded for offline viewing.

Effective next year, the law prohibits using terms like "buy" or "purchase" to imply unrestricted ownership without explicit clarification. Assemblymember Jacqui Irwin stated the law aims to prevent deceptive advertising and ensure consumers understand they are typically purchasing licenses, not outright ownership.

Subscription Services Remain Unclear

Incidents where companies like Sony and Ubisoft have taken games offline highlight consumer concerns. Ubisoft's removal of The Crew series due to "licensing constraints" exemplifies the potential for loss of access. However, the new law doesn't address subscription services like Game Pass or the implications for offline game copies.

A Ubisoft executive previously suggested players should accept not "owning" games in the traditional sense, given the rise of subscription models. Philippe Tremblay noted the need for a shift in consumer expectations, similar to the transition from physical media ownership.

Assemblymember Irwin clarified that the law aims to improve consumer understanding of digital purchases. She highlighted the difference between the perceived permanent ownership of digital goods and the reality of purchasing a revocable license.