Valve’s Steam platform now displays an upfront warning to customers that they’re buying a license, not a game, in preparation for California’s AB 2426 law taking effect in 2025.
California Law AB 2426
Signed by Governor Gavin Newsom, the law requires digital marketplaces to clearly state that customers only purchase a license to digital content, not ownership. This move aims to protect consumers from false advertising.
Key Provisions:
– Prohibits using terms like “buy,” “purchase,” or “own” for digital goods
– Requires plain language disclosure of licensing terms
– Exempts products that can be permanently downloaded
– Imposes false advertising fines for non-compliance
Steam’s Warning
Steam now displays a warning at the shopping cart stage:
“A purchase of a digital product grants a license for the product on Steam…”
This warning points to the Steam Subscriber Agreement for full terms and conditions.
Global Rollout
Despite being a California law, Steam has implemented the warning globally, including in the UK.
Industry Implications
This change follows high-profile cases of gamers losing access to purchased games due to server shutdowns, such as Ubisoft’s The Crew.
Assembly member Jacqui Irwin stated:
“As retailers shift away from physical media, consumer protections for digital media purchases become increasingly important… AB 2426 ensures sellers can’t deceive consumers into thinking they own their digital purchases.”
While the law doesn’t prevent content revocation, it mandates transparency about licensing terms.