California to make companies admit when they aren’t actually selling digital games to customers

As arguably the most progressive and at times imposing state in the union, California Governor Gavin Newsom has signed a new law that will force digital storefronts to disclaim that customers are not actually purchasing media from them if they buy an online compatible game.

Many people may not be aware of this, but when someone purchases a digital copy of a movie, a book, music, or a game, they aren't technically buying the item permenantly. In fact, if purchasing means to own something, then paying for a digital copy as it stands in legistation right now is not purchasing at all. It's licensing an item out.

Companies that sell digital copies on a digital storefront on places like the Ubisoft Store, Valve Steam Store, or PlayStation Shop to name a few, can at any time discontinue services and delete the game from a player’s library for online-only games.

Beginning in January of 2025, AB 2426 will require these digital storefronts to disclaim that they’re selling users licenses and that those licenses can be revoked at any time. They will no longer be able to use the words “buy” or “purchase” without disclaiming that customers will not be getting permanent access to that item.

The digital world is evolving quickly, and new issues have propped themselves into the limelight now that more and more people have deviated away from purchasing physical copies of their media.

In some cases, only digital copies are available for consumers to access. While this law doesn’t change the business practices of digital storefronts in the manner in which they operate, it at least raises awareness to buyers prior to spending money on something they may not be able to retain in the long run.