A newly signed California law (AB 2426) will force digital storefronts to tell its customers it is licensing rather than buying a digital good. Presumably, digital video game storefronts like the PlayStation Store would be affected by this, and will have to convey that its players are licensing games that could be revoked if the seller no longer holds the right to the product.
New California law forces digital storefronts to tell customers they are licensing rather than buying content
When the law goes into effect next year, digital sellers will be restricted from using terms like “buy,” “purchase,” or any other term that conveys the consumer has unrestricted ownership of the purchased digital good unless the seller clearly states the consumer is purchasing a license for the product. If sellers do decide to use terms that suggest a purchase is being made, they will have to either obtain acknowledgment from the costumer that they are purchasing a license to a digital good that could be revoked at any point, or provide a clear statement before each transaction that the digital good is just a license along with access to its full terms and conditions. Those breaking this law would be subject to a fine for false advertising.
To put it simply, digital storefronts that do business in the state of California now have to admit its costumers are purchasing a license. Or at the very least, spell it out plainly for its costumers that they do not have unrestricted ownership of the product, and it could be taken away.
Since many digital storefronts, including the PS Store, do business in California, this could mean Sony’s digital games store may have to integrate these changes. That means all the PlayStation users that purchase digitally through the PS Store will have to admit they do not actually own their purchases.
“As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important,” said Assemblymember Irwin in a press release. “AB 2426 will ensure the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”
The new law is meant to help costumers be more aware of their purchases, as many of the digital purchases people make are for licensing rather than ownership, and can be taken away at a moment’s notice. A pretty clear example of this happened last year when Sony announced PlayStation owners would lose all their Discovery TV shows due to content licensing. However, Sony and Warner Bros. reached an agreement that stopped the delisting.
(Source: Digital Democracy)