Remember last year? When PlayStation tried to sneakily take away the content that users had already paid for? Or even in 2020, when Destiny 2 removed hoards of what was once paid content. These may sound unfounded, but it’s becoming increasingly the norm in a world shifting away from physical media. To combat this, California is introducing a new law to protect consumers.
Today, most people buy media through some sort of digital means, leaving the consumer at the mercy of the distributor. Years ago, when you purchased a DVD, you owned it. Obviously. But with digital media, it’s completely different. No one can stop a DVD from functioning after you’ve already bought it. However, PlayStation tried to do just that with digital content from Discovery purchased via the PlayStation Store. The cherry on top? They did it entirely without refunds. After an outcry, Sony rolled back this decision.
In response to situations like this, California Governor Gavin Newsom signed a new law to make the terms of digital purchases more transparent. Digital stores that sell media like films, games, and music will have to disclose to consumers that their purchase does not equate to owning the product. Instead, it is akin to getting a license for it. Digital stores can’t use terms like “buy” or “purchase” unless they inform customers they don’t fully own the product.
If the rule is broken, it could invoke a fine for false advertising, as already existing laws state that it’s “unlawful for any person doing business in California and advertising to consumers in California to make any false or misleading advertising claim.” The law will go into effect next year.
Irwin’s press release states that the legislation is in direct response to PlayStation’s situation but also came about as Ubisoft revoked licenses for the video game The Crew, as shown below. Therefore, it takes customers’ access away from a previously purchased game. California is the first state to recognize the false claims proposed to customers when trying to advertise digital licenses, according to Aaron Perzanowski, a law professor at the University of Michigan.
“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 Jacqui Irwin, who authored the original bill. “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.”
As we shift to digital content and away from physical media, it’s imperative consumers understand the terms of their purchase. Even though it does not stop stores from removing digital content, California’s law is a good starting place. Hopefully, other states will follow suit to empower customers to have agency over their monetary funds.