# California Takes the Lead in Prohibiting Deceptive “Disappearing Media” Sales
In a historic decision, California has emerged as the first state in the United States to tackle the escalating problem of misleading sales tactics concerning digital products, including books, films, and video games. On September 24, 2024, Governor Gavin Newsom enacted Assembly Bill 2426 (AB 2426), designed to safeguard consumers from being misled into buying digital content without a complete understanding that they are obtaining only temporary licenses instead of permanent ownership.
## Defining “Disappearing Media”
“Disappearing media” describes digital materials that customers think they possess after purchase but subsequently lose access to because sellers or content providers revoke their licenses. This issue has surged as the entertainment and gaming sectors increasingly move from selling physical media to providing digital versions that are frequently subject to intricate licensing agreements.
Often, purchasers do not realize that their “acquisitions” are not permanent and that access to the media can be taken away if the seller loses distribution rights. This situation has resulted in instances where buyers find themselves unable to access digital content they believed they owned, leading to annoyance and bewilderment.
## Main Aspects of AB 2426
Backed by Democratic Assemblymember Jacqui Irwin, AB 2426 aims to tackle these issues by implementing several essential consumer safeguards:
1. **Transparent Licensing Disclosures**: The legislation requires sellers to explicitly convey when a buyer is only receiving a license to access digital content instead of outright ownership. This information must be presented in a way that is easily understandable, not hidden within lengthy terms of service agreements. The details must be “distinct and separate” from other transaction terms.
2. **Clarification on Access Duration**: Sellers must inform buyers whether access to the digital product may be revoked in the future, especially if they no longer hold the rights to license it. This provision ensures that consumers are well-informed about the nature of their purchases.
3. **Exemptions for Clear Language and Subscription Models**: The law permits exemptions when sellers use straightforward language to clarify that the transaction constitutes a license. Additionally, subscription services that offer time-limited access to content are exempt, provided the subscription terms are transparent to consumers.
4. **Safeguards for Permanent Downloads**: In cases where a digital item is sold as a permanent download accessible offline, regardless of the seller’s licensing status, the law does not apply. This ensures that consumers who genuinely own their digital acquisitions remain unaffected by these new regulations.
## The Rationale Behind This Law
The surge in digital media has presented various challenges for consumers, particularly regarding their understanding of their purchases. Many individuals assume that purchasing a digital book, movie, or video game grants them ownership similar to a physical copy. However, in numerous instances, they are simply securing access to content, which can be terminated at any moment.
Assemblymember Irwin emphasized the law’s significance in a press release, stating it was drafted to “address the increasingly-common situation of consumers losing access to their digital media purchases through no fault of their own.” She cited several prominent examples illustrating this problem, including:
– **Revocation of Game Licenses by Ubisoft**: In April 2023, Ubisoft revoked licenses for purchases of its video game *The Crew*, leaving consumers unable to access the game they had acquired.
– **Sony’s Removal of Discovery TV Content**: In 2023, Sony faced criticism for revealing plans to eliminate 1,318 seasons of Discovery TV shows from customer libraries, inciting outrage among consumers who believed they owned this content.
These occurrences highlight the necessity for enhanced transparency in digital transactions and more robust consumer protections.
## A Long-Needed Remedy
The challenge of disappearing media has been a concern for consumer advocates and lawmakers for years. In 2016, the U.S. Department of Commerce’s Internet Policy Task Force released a white paper advocating for consumers to receive more information regarding their digital transactions. The report concluded that consumers would gain from understanding whether they were paying for access or ownership of a copy, which would foster trust and confidence in the online marketplace.
Despite these recommendations, it took eight years for California to be the first state to enact legislation. Assemblymember Irwin stressed that the transition away from physical media has rendered consumer protections for digital goods more crucial than ever. “AB 2426 will guarantee that deceptive advertising from digital media sellers mistakenly telling consumers they own their purchases will become a thing of the past,” she asserted.
## Effects on Industry and Responses
This new legislation is anticipated to significantly influence the digital media sector
