California enacts law banning 'Purchase' buttons from permanently unavailable digital content
California has passed a bill that will come into effect in 2025 that requires online sales of content that provides access to content, rather than the digital content itself, to be clearly stated as such, and prohibits the use of terms such as 'buy' or 'purchase' to refer to the sale of content that does not provide a permanent way to use it offline.
AB 2426: Consumer protection: false advertising: digital goods. | Digital Democracy
Assemblymember Irwin Urges Governor to Sign Legislation Increasing Transparency Surrounding Disappearing Digital Media | Assemblymember Jacqui Irwin Representing the 42nd California Assembly District
https://a42.asmdc.org/press-releases/20240916-assemblymember-irwin-urges-governor-sign-legislation-increasing
California's new law forces digital stores to admit you're just licensing content, not buying it - The Verge
https://www.theverge.com/2024/9/26/24254922/california-digital-purchase-disclosure-law-ab-2426
It has become common to purchase and enjoy digital content such as movies, music, and games on the Internet. However, in many cases, the content that is 'purchased' is not actually owned by the user; the user is merely granted a license to use the content temporarily.
For example, Ubisoft drew criticism in April 2024 when it removed licenses for its discontinued online-only game 'The Crew' from players' accounts. Sony also announced in 2023 that it would remove 1,300 purchased Discovery shows from its PlayStation Store library, but later retracted the announcement.
This problem of 'disappearing content' is not new, and in 2021 a class action lawsuit was filed over claims that payments on the App Store and iTunes are deceptively labeled as 'purchases' and are in fact 'rentals.'
Apple faces class action lawsuit: Is it deceptive to label content on the App Store and iTunes as 'purchased'? - GIGAZINE
California Governor Gavin Newsom signed a new consumer protection law, AB 2426 , into law on September 24, 2024.
Senator Jackie Irwin, who sponsored the bill, said of the legislation, 'As retailers continue to shift away from selling physical media, the need for consumer protections when it comes to digital media purchases becomes increasingly important. AB 2426 will ensure that false and deceptive advertising by digital media sellers, who mislead consumers into thinking that because they buy something, it's theirs, becomes a thing of the past.'
This law, which will come into effect in 2025, will require any sales contract with consumers that merely grants permission to use digital media to be clearly stated, and will prohibit describing the payment of a fee as a 'buying' or 'purchase,' as well as any misleading representation that it grants unlimited ownership rights to the content.
They must also inform consumers if their license may be revoked and provide a complete list of the conditions under which it will be revoked, and sellers who do not comply will be penalized for false advertising.
'Consumers around the world need to understand that when they pay for digital movies, music, books, and games, what they're 'purchasing' can disappear without warning,' said Aaron Perzanowski, a law professor at the University of Michigan who specializes in the issue of disappearing digital content. 'While significant work remains to be done to protect consumers' digital rights, AB 2426 is an important step in the right direction.'
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in Web Service, Video, Game, Posted by log1l_ks