Steam and Epic Forced to Acknowledge: You Don't Own the Games

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 practices surrounding digital goods. It requires stores to use clear and conspicuous language, specifying the nature of the transaction, ensuring consumers understand they may not own the game outright. Failure to comply could result in civil penalties or misdemeanor charges.

The legislation defines "game" broadly, encompassing applications accessed on various devices, including add-ons and additional content. It dictates the use of prominent text to inform consumers, preventing the use of terms like "buy" or "purchase" without explicit clarification if unrestricted ownership isn't granted.

Assemblymember Jacqui Irwin emphasized the importance of consumer protection in the increasingly digital marketplace, highlighting the common misconception that digital purchases equate to permanent ownership. She stated that the law aims to ensure consumers understand they are often purchasing a license, revocable at the seller's discretion.

The law's impact on subscription services like Game Pass remains unclear. The bill doesn't address subscription models or offline game copies, leaving some aspects undefined.

Recent incidents, such as Ubisoft's removal of The Crew series, underscore the need for clarity. A Ubisoft executive previously suggested gamers should become accustomed to not technically owning games, reflecting the industry's shift towards subscription-based models. However, this new law seeks to provide consumers with a clearer understanding of their purchases regardless of the model.