Digital Store Wars: Steam, Epic Admit Users Don't Truly "Own" Games

California's New Law Demands Transparency in Digital Game Ownership

A landmark law in California mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Effective next year, AB 2426 requires these platforms to clearly inform consumers whether their purchases grant ownership or merely a license to access the game. This legislation aims to combat misleading advertising practices surrounding digital goods, ensuring consumers understand they may not own the games they purchase outright.

The law specifies that clear and conspicuous language, such as larger or contrasting font, must be used to inform consumers of the license-based nature of their transactions. Failure to comply could result in civil penalties or misdemeanor charges for false advertising. The act specifically prohibits the use of terms like "buy" or "purchase" unless explicitly clarified that this doesn't equate to unrestricted ownership or access. The law defines "game" broadly, encompassing applications accessed via various electronic devices, including associated add-ons and content.

Assemblymember Jacqui Irwin highlighted the importance of the law, stating that consumers often mistakenly believe their digital purchases grant permanent ownership, similar to physical media. She emphasized the need for protection as the digital marketplace expands and sellers can revoke access at any time. The law aims to ensure consumers understand they are typically purchasing a license, not outright ownership.

However, the law's implications for subscription services like Game Pass remain unclear. It doesn't address the specifics of subscription models, "renting" digital products, or offline game copies. This ambiguity follows recent controversies where companies like Ubisoft have taken games offline, leaving players without access despite prior purchases. While Ubisoft executives have suggested players should become accustomed to the concept of not "owning" games in the traditional sense, this new law aims to prevent surprise delistings and ensure informed consumer choices. The law's focus is on providing consumers with complete transparency regarding their digital purchases.