California Governor Gavin Newsom has enacted AB 2426, a new regulation mandating that digital marketplaces more clearly inform customers when they are purchasing only a license to access media, rather than owning it outright. The legislation applies specifically to digital copies of video games, music, movies, TV shows, and ebooks bought from online storefronts, but it does not cover permanent offline downloads. If marketplaces fail to use explicit language clarifying these restrictions, they could face fines for false advertising within the state. As a result, terms like “buy” or “purchase” will no longer be used in these contexts when the law comes into effect in 2025.
The shift towards digital storefronts has introduced issues concerning media ownership and preservation in contemporary times. A recent incident involving Ubisoft, where the company deleted “The Crew” from players’ libraries following the shutdown of the game’s servers, highlights how customers can unexpectedly lose access to digital media they believed they owned. Although the new law in California will not prevent similar occurrences or mitigate their impact on consumers, it emphasizes that true ownership of digital media is rare and often elusive.
Governor Newsom has had a particularly active schedule. In addition to signing AB 2426, he approved the state’s “click to cancel” bill earlier this week. Last week, he also signed two additional pieces of legislation aimed at safeguarding against unauthorized AI reproductions of actors’ likenesses, both for currently living and deceased individuals.