Own It or License It? California’s Law Brings Clarity to Digital Sales
California Governor Gavin Newsom has enacted a new law (AB 2426) aimed at increasing transparency regarding digital media purchases. The law requires digital platforms selling games, movies, music, and ebooks to clearly state that customers are purchasing a license to use the content, rather than implying ownership.
While this law doesn’t prevent companies from revoking access to digital content, it ensures that consumers are more informed about the nature of their purchase. Starting next year, digital platforms will no longer be able to use terms like “buy” or “purchase” without clarifying that what customers are actually obtaining is a revocable license.
Platforms must disclose any restrictions associated with the digital content. Failure to comply with these requirements could result in penalties for false advertising. The goal of the legislation is to improve transparency in the digital marketplace, giving consumers better information about what they are truly acquiring when they make digital purchases.
