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

California's New Law Mandates Transparency in Digital Game Sales

A new California law, AB 2426, taking effect next year, requires digital game stores like Steam and Epic Games to clearly inform consumers about the nature of their purchases. The law addresses the often-misunderstood distinction between purchasing a game and actually owning it. Instead of implying outright ownership, stores must explicitly state whether a transaction grants a license or actual ownership of the digital product.

The legislation aims to combat misleading advertising practices that suggest perpetual ownership when, in reality, digital game purchases often grant only limited access rights. The law mandates clear and conspicuous language—larger font size, contrasting colors, or distinct symbols—to highlight this crucial information. Failure to comply could result in civil penalties or misdemeanor charges.

The law specifically prohibits the use of terms like "buy" or "purchase" unless accompanied by clear disclosure of any limitations on access or ownership. This addresses concerns that consumers often assume they own digital goods, similar to physical media, when this is not always the case. Assemblymember Jacqui Irwin emphasized the importance of clarifying this distinction, citing instances where gaming companies have removed access to previously purchased games.

While the law offers increased consumer protection, its application to subscription services like Xbox Game Pass remains unclear. The law also doesn't specifically address offline game copies. The ambiguity surrounding subscription models reflects ongoing discussions within the gaming industry about evolving ownership models and consumer expectations.

Ubisoft's recent comments urging gamers to become accustomed to not "owning" games highlight the shift towards subscription-based services. However, AB 2426 seeks to ensure consumers are fully informed before making purchases, regardless of the chosen business model. The law represents a significant step towards greater transparency and consumer protection in the rapidly evolving digital marketplace.