California Governor Gavin Newsom recently signed AB 2426, a new law that mandates digital marketplaces to clearly inform customers when they are purchasing a license to access media instead of ownership. This law, effective in 2025, will address misleading advertising and prevent marketplaces from using terms like “buy” or “purchase” for digital content such as video games, music, movies, TV shows, and ebooks. The legislation acknowledges the shift to digital storefronts but does not prevent situations like Ubisoft’s deletion of games from players’ libraries. Despite not stopping these losses, the law clarifies the intangible nature of ownership in the digital age. Governor Newsom has been active in signing bills this week, including the click-to-cancel subscription bill and regulations protecting against unwanted AI likenesses of actors.
