California Law Mandates Digital Stores Clarify Licensing of Digital Goods

The new legislation requires companies to inform consumers they are purchasing licenses, not ownership, for digital media.

AB 2426, signed by Governor Gavin Newsom, aims to combat misleading sales of digital media by enforcing transparency.
Starting January 1, 2025, digital storefronts must clearly state that customers are buying licenses, not owning the products outright.
The law prohibits using terms like 'buy' or 'purchase' without clarifying the limitations and potential revocations of digital licenses.
The legislation responds to consumer complaints about losing access to purchased digital content, as seen with Ubisoft's The Crew and Sony's Discovery content.
Companies failing to comply with the new requirements could face fines for false advertising under California's Unfair Competition Law.