CA law forces companies to admit digital media is licensed, not bought

A new law in California compels retailers to disclose that always-online games could eventually be shut down and delisted.

Per Game File, the law will go into effect on January 1, 2025. It's part of a larger consumer protection and false advertising bill signed earlier this week. Sellers of digital items will no longer be able to use the terms "buy" or "purchase" mid-transaction.

"The seller provides to the consumer before executing each transaction a clear and conspicuous statement that states in plain language that 'buying' or 'purchasing' the digital good is a license," reads the law.

PlayStation, Valve, and Xbox were specifically listed by Game File as companies that fall under this requirement. Other platform holders such as Nintendo, Ubisoft, and EA also operate in the region.

There are some games exempt from this law including free titles, those offered through a subscription service, and digital goods that can be downloaded (and stored) permanently and accessed without an internet connection.

California objects to forced obsolescence

In the last several years, digital movies and shows have been pulled (often abruptly) from streaming services. Game-wise, this has primarily affected multiplayer titles that require online connections to be playable.

The length between a game's launch and when it gets shut down can vary, but it has happened often enough that players have started to take action. In August, public outcry was strong enough that Ubisoft promised to create offline modes for The Crew 2 and The Crew Motorfest.

Speaking to Game File, assembly member Jacqui Irwin (D-CA) said the bill was "motivated by consumers losing access to content."

Irwin cited last year's instance of PlayStation removing access to Discovery content that people had purchased. That issue was eventually resolved, but Irwin noted Ubisoft's delisting of The Crew "further highlighted just how widespread this issue is."

Her hope with the bill is to help consumers realize they are buying a digital item's license rather than the media itself. She also hopes it can get companies to find solutions to keep their digital products around longer, including potentially cheaper rental or subscription options.

Game File's full coverage of the law can be read here.