Steam, Epic Admit: You Don't Own Games on Their Platforms

California's New Law: Clarifying Digital Game Ownership

A new California law mandates greater transparency from digital game stores like Steam and Epic regarding game ownership. Starting 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 associated applications. It defines a "game" broadly to encompass applications accessed on various devices. The legislation requires stores to use prominent language – larger font, contrasting colors, or distinct markings – to inform consumers about the nature of their purchase.

Violators face civil penalties or misdemeanor charges. The law also prohibits advertising digital goods as offering "unrestricted ownership" unless this is genuinely the case. The bill's authors emphasize the need for consumers to understand they might not own their digital purchases, as access can be revoked by the seller at any time, unless the product is downloadable for offline use.

The law prohibits using terms like "buy" or "purchase" without explicitly clarifying that unrestricted access or ownership isn't guaranteed. Assemblymember Jacqui Irwin highlighted the increasing importance of consumer protection in the shift to digital-only media, aiming to end deceptive advertising practices.

Subscription Services Remain Unclear

The law's implications for subscription services like Game Pass are currently undefined. It also lacks specifics on offline game copies. This ambiguity follows recent controversies where companies like Ubisoft have taken games offline, leaving paying customers without access.

A Ubisoft executive previously suggested players should accept the lack of technical ownership in the context of subscription models. However, Assemblymember Irwin clarified that the law aims to provide consumers with a clear understanding of their purchases, contrasting the perceived permanence of ownership with the reality of licensing agreements.

This new California law represents a significant step toward greater consumer protection in the digital gaming market, although some areas remain to be clarified.