Digital Ownership Dispute Forces Steam, Epic to Acknowledge Game Limitations

California's New Law Clarifies Digital Game Ownership

A new California law, AB 2426, mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Effective next year, these platforms must clearly state whether a purchase grants ownership or merely a license.

The law aims to combat misleading advertising of digital goods. It defines a "game" broadly, encompassing applications accessed via various devices, including add-ons and DLC. Stores must use clear and conspicuous language, specifying the nature of the transaction. Failure to comply may result in civil penalties or misdemeanor charges.

The legislation prohibits advertising digital products as offering "unrestricted ownership" unless this is explicitly true. It also restricts the use of terms like "buy" or "purchase" unless the limitations on access are clearly explained. Assemblymember Jacqui Irwin emphasized the need for consumer protection in the increasingly digital marketplace, highlighting the common misconception that digital purchases grant permanent ownership.

The law's impact on subscription services like Game Pass remains unclear, as does its application to offline game copies. This ambiguity follows recent controversies where companies like Ubisoft have removed games from availability, raising concerns about consumer rights. Ubisoft's director of subscriptions, Philippe Tremblay, previously suggested a shift in consumer expectations towards accepting the lack of true ownership in the digital gaming space.

Irwin clarified that the law intends to provide consumers with a more accurate understanding of their purchases, emphasizing the distinction between licensed access and true ownership. The law represents a significant step toward greater transparency and consumer protection in the digital game market.