Fact Check: California have adopted a law that prohibit platforms using the term buy when acquiring the game as the service

Fact Check: California Prohibits Use of "Buy" for Digital Goods

What We Know

On September 24, 2024, California Governor Gavin Newsom signed into law Assembly Bill 2426 (AB 2426), which aims to clarify the terminology used in the sale of digital goods. The law specifically prohibits digital storefronts from using terms like "buy" or "purchase" unless they clearly inform consumers that they are acquiring a limited license to access the digital content, rather than full ownership (California Requires Digital Storefronts to Provide Terms). This legislation was prompted by consumer complaints regarding the misleading nature of such terms, particularly following incidents where consumers lost access to previously purchased digital content due to licensing issues (New California Law Requires Disclosures for Selling).

The law takes effect on January 1, 2025, and applies to a wide range of digital goods, including games, videos, audio, and digital books. It mandates that sellers provide clear disclosures at the point of sale, outlining the limitations of the license being provided (California is here to save you from misleading buy buttons on). Violations of this law could result in civil penalties or misdemeanor charges for false advertising (A License to Play vs Ownership – California's New Law).

Analysis

The primary focus of AB 2426 is to protect consumers from the confusion surrounding digital purchases. Historically, the terms "buy" and "purchase" have led consumers to believe they own the digital goods outright, which is often not the case. The law addresses this by requiring that sellers disclose the nature of the transaction clearly and conspicuously (New California Law Proscribes Using "Purchase" When A "Seller").

The law's effectiveness hinges on its implementation and the clarity of the disclosures provided. Critics argue that while the law is a step towards consumer protection, it may also create additional friction in the purchasing process, potentially leading to consumer frustration (California's new law forces digital stores to admit you're just). However, proponents assert that the law is necessary to combat misleading advertising practices that have become prevalent in the digital marketplace (New law will change how digital games are sold, at least in).

The sources used to evaluate this claim are credible, coming from legal analysis firms, consumer advocacy groups, and reputable news outlets, all of which provide detailed insights into the law's implications and the rationale behind its enactment. The law is a direct response to consumer feedback and aims to enhance transparency in digital transactions, which is a significant concern in today's digital economy (New California Law Restricts Use of Words “Purchase” & “Buy”).

Conclusion

The claim that California has adopted a law prohibiting platforms from using the term "buy" when acquiring digital goods is True. The enactment of AB 2426 clearly outlines the restrictions on terminology used in digital sales and emphasizes the need for transparency regarding the nature of digital purchases. This law represents a significant shift in consumer protection legislation, aiming to clarify the rights of consumers in the digital marketplace.

Sources

1. California Requires Digital Storefronts to Provide Terms ...
2. New California Law Requires Disclosures for Selling ...
3. California is here to save you from misleading buy buttons on ...
4. A License to Play vs Ownership – California's New Law ...
5. New California Law Proscribes Using "Purchase" When A "Seller ...
6. California's new law forces digital stores to admit you're just ...
7. New law will change how digital games are sold, at least in ...
8. New California Law Restricts Use of Words “Purchase” & “Buy”