In a pivotal move to safeguard consumer rights, California Governor Gavin Newsom has signed Assembly Bill 2426 into law, which mandates increased transparency regarding digital media ownership. The law, set to take effect in 2025, requires digital marketplaces to clarify that consumers are not buying ownership of digital content but rather acquiring a license to access it. This significant legislative step targets common digital purchases, including video games, music, movies, TV shows, and eBooks.
As digital media consumption continues to rise, many consumers operate under the misconception that they own the digital products they purchase. AB 2426 aims to eliminate this confusion by removing terms like “buy” or “purchase” from digital platforms unless the purchase includes permanent offline access. Instead, consumers will see clearer language indicating that they are paying for limited access rather than outright ownership.
This regulation is part of a broader initiative to combat misleading advertising practices within the state. Companies that fail to comply with the new law may face significant fines for false advertising. Governor Newsom emphasized that consumers deserve to be fully informed about the nature of their digital purchases, particularly in a marketplace increasingly dominated by transient digital licenses.
While this law provides much-needed clarity, it does not address the fundamental challenges surrounding digital ownership. High-profile cases, such as Ubisoft’s removal of the game The Crew from users’ libraries after server shutdowns, highlight the fragility of digital licenses. Even with AB 2426 in place, consumers may still lose access to content they believed they owned, underscoring the need for ongoing conversations about digital rights and preservation.
AB 2426 is part of a larger suite of consumer protection measures championed by Governor Newsom. Just recently, he also signed a “click to cancel” bill aimed at simplifying the cancellation process for online subscriptions. Furthermore, two new bills were introduced to protect actors—both living and deceased—from having their likenesses exploited by artificial intelligence without their consent.
These legislative actions demonstrate Newsom’s commitment to enhancing consumer rights while adapting to the evolving landscape of digital technology.
Although AB 2426 does not eliminate the risks associated with digital ownership, it ensures that consumers are not misled about what they are purchasing. By enforcing transparency in digital media transactions, California is taking a significant step towards empowering consumers to make informed choices in an increasingly complex digital world. This law marks a crucial advancement in the protection of consumer rights, setting a precedent for future legislative efforts in the digital arena.
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