Steam, Epic Under Fire: Players Don't Truly Own Games

California's New Law Demands Transparency in Digital Game Ownership

A landmark law in California mandates greater transparency from digital game stores like Steam and Epic Games regarding game ownership. Effective next year, AB 2426 requires these platforms to clearly state whether a purchase grants ownership or merely a license. This legislation aims to combat misleading advertising and protect consumers from the misconception that they own digital games outright.

The law stipulates that the disclosure of licensing agreements must be prominent and unambiguous, using clear language and visual cues (e.g., larger font size, contrasting colors) to draw attention to this crucial information. Failure to comply could result in civil penalties or misdemeanor charges. Furthermore, the use of terms like "buy" or "purchase" is prohibited unless explicitly clarified that the transaction doesn't equate to unrestricted ownership.

Assemblymember Jacqui Irwin highlighted the need for consumer protection in the evolving digital marketplace. She emphasized the common misconception that purchasing digital goods grants permanent ownership, akin to physical media. In reality, digital purchases often grant only a revocable license, allowing the seller to remove access at any point. The law seeks to address this discrepancy by demanding upfront clarity.

While the law significantly improves consumer understanding of digital game purchases, its implications for subscription services like Game Pass remain unclear. The bill doesn't explicitly address subscription models or the implications for offline game copies, leaving some aspects undefined. This ambiguity follows comments from Ubisoft executives who suggested gamers should adapt to the concept of not "owning" games in the traditional sense, particularly with the growing prevalence of subscription-based gaming.

The law's passage marks a significant step toward greater consumer protection in the digital gaming landscape. By requiring clear and conspicuous disclosures, California aims to ensure consumers make informed decisions and understand the limitations of their digital purchases. However, the ongoing debate surrounding subscription models and offline access points to the complexities of regulating the ever-evolving digital entertainment market.