Steam, Epic Required to Admit You Don't \"Own\" Games on Their Platforms

California's New Law Clarifies Digital Game Ownership

A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Effective next year, these platforms must clearly state whether a purchase grants ownership or merely a license.

The law, AB 2426, aims to combat misleading advertising of digital goods, including video games and related applications. It defines a "game" broadly, encompassing applications accessed via various electronic devices. The legislation requires stores to use prominent language, specifying licensing rather than ownership, in a manner easily distinguishable from surrounding text.

Violations could result in civil penalties or misdemeanor charges. The law explicitly prohibits advertising or selling digital products as offering "unrestricted ownership" unless this is genuinely the case. Legislators emphasized the need for consumers to understand they might not possess true ownership, as access can be revoked by the seller.

The law also restricts the use of terms like "buy" or "purchase" unless explicitly clarified that unrestricted access or ownership isn't guaranteed. Assemblymember Jacqui Irwin highlighted the importance of protecting consumers in the shift towards digital-only marketplaces.

Subscription services and offline game copies remain outside the law's direct scope. This ambiguity follows recent controversies where companies like Ubisoft removed games from players' access, citing licensing issues. Ubisoft executives have previously suggested that players should adapt to the concept of not technically "owning" games in the context of subscription models.

Assemblymember Irwin clarified that the law aims to ensure consumers understand the nature of their digital purchases, drawing a parallel to the permanent access associated with physical media like DVDs or books, which is typically not the case with digital licenses.