By Sagar V. Mankar The digital age has revolutionized how we consume media, but it’s also brought new challenges around ownership and transparency. In a significant move, the U.S. state of California recently passed Assembly Bill 2426, aimed at improving consumer protection in the digital marketplace.
Signed into law by Governor Gavin Newsom, the legislation requires digital storefronts to clearly disclose when customers are purchasing a license rather than outright ownership of digital content. This law, set to take effect in 2025, has already prompted proactive steps from major companies like Valve, the owner of Steam, a leading platform for digital game sales.
Steam’s New Disclaimer
Valve has taken the lead by implementing a clear disclaimer on its Steam platform, informing users that a purchase grants only a license to use the product. The message appears during the checkout process, stating: “A purchase of a digital product grants a license for the product on Steam.” Surprisingly, the company also issues this warning in regions not covered by the legislation, such as the UK.
Why This Matters
The issue of digital content ownership has sparked debates in recent years, fueled by incidents like Ubisoft’s controversial server shutdown for The Crew. When the servers were taken offline, players lost access to the game entirely, even those who had purchased physical copies. This highlighted a harsh reality: without offline modes or continued server support, digital purchases can disappear, leaving consumers with nothing more than a defunct file or a nostalgic keepsake.
In response to backlash, Ubisoft implemented offline modes in subsequent titles like The Crew 2 and The Crew Motorfest. However, the situation underscored the need for stronger consumer protections and clearer communication about digital licensing terms.
A Shift in Gaming Culture
In the past, buying a game meant owning it indefinitely. Whether it was a cartridge or a CD, players had physical control over their purchases. Today, however, most digital content operates on a licensing model. This means consumers are essentially renting access to games, music, movies, or TV shows for as long as providers choose to maintain availability.
California’s new law addresses the confusion caused by misleading terms like “buy” or “purchase” in the digital space. By requiring explicit disclaimers, the legislation aims to prevent deceptive advertising and ensure consumers understand what they are paying for. Companies that fail to comply could face fines for false advertising.
Broader Implications
While Steam’s disclaimer is a step in the right direction, it doesn’t change the fundamental nature of digital licensing. Providers still retain the right to revoke access, leaving consumers at their mercy. However, platforms like GOG (Good Old Games) offer a promising alternative by selling DRM-free games that customers can download, back up, and use without fear of losing access.
California’s law may be a game-changer, setting a precedent for other jurisdictions to follow. By pushing companies toward greater transparency, it empowers consumers to make informed decisions. As Assembly member Jacqui Irwin, the bill’s author, stated, “This ensures that false and deceptive advertising from sellers of digital media becomes a thing of the past.”
Looking Ahead
As Steam takes the initial step, other digital stores such as Xbox, PS Plus, and the Epic Game Store will likely follow suit the application of the law approaches.