Steam, the leading online gaming platform, has begun displaying a new notification in its shopping cart, informing users that their purchases only grant them a license to use digital content, not actual ownership of the games. This update, recently highlighted by Engadget, appears to be a proactive measure in anticipation of California’s new law, AB 2426, which is set to come into effect in 2025. The legislation requires companies to clarify to consumers that they do not own the digital products they buy, but rather have a license to access them.
Understanding the New Notification
When users add games or other digital products to their Steam cart and proceed to checkout, they will now see a notice stating, “A purchase of a digital product grants a license for the product on Steam.” This disclaimer is a significant change in how digital transactions are represented on the platform, as many users may have previously assumed that purchasing a game online equated to outright ownership. The notice aims to clarify the nature of digital purchases, which often come with restrictions that limit a user’s ability to transfer or resell content.
California’s Consumer Protection Initiative
This move by Steam aligns with the intent behind California’s AB 2426, a consumer protection law signed by Governor Gavin Newsom in September 2024. The law mandates that digital marketplaces clearly inform customers when they are purchasing a license rather than full ownership of digital media, which includes video games, music, movies, and eBooks. Notably, the law does not apply to offline permanent downloads, which allow users uninterrupted access to their media without relying on online platforms.
The primary goal of AB 2426 is to protect consumers from misleading advertising. Companies that fail to comply could face penalties for deceptive practices. As digital content sales continue to increase, the need for transparency in these transactions has become crucial.
Why This Law Is Necessary
The emergence of AB 2426 was driven by several incidents involving digital content access. A notable example occurred when Ubisoft removed *The Crew* from players’ libraries after its online servers were shut down. This left users who had purchased the game without access, highlighting the risks associated with digital ownership. Such situations have raised consumer awareness about the limitations of digital purchases, making clear communication essential.
Numerous other companies in the entertainment sector have similarly restricted access to digital products due to server shutdowns, licensing disputes, or policy changes. These actions have frustrated many consumers, leading them to feel they have lost access to products they believed they owned.
Steam’s Global Approach
Although AB 2426 is specific to California, Steam appears to be implementing its new licensing notice on a global scale. Reports suggest that users in regions such as the U.K. have also encountered this notification in their shopping carts. By taking this step, Steam is not only preparing for California’s legislation but also setting a precedent that could help them comply with potential regulations in other regions.
The decision to roll out this notice globally underscores the complexity of digital content ownership, an issue that extends beyond geographical boundaries. As digital platforms become increasingly integral to the entertainment industry, companies like Valve, which owns Steam, must navigate a landscape that is likely to see more regulatory scrutiny.
The Future of Digital Transactions
Jacqui Irwin, the California Assembly member who authored AB 2426, praised the law as a vital measure for consumer protection. She emphasized that as physical media sales decline, it is essential to ensure that consumers are aware of their rights when purchasing digital products. “The law will help eliminate misleading claims that consumers own digital products when they only possess a license to use them,” she stated.
Irwin’s comments reflect a growing concern that, as digital sales become commonplace, consumers need clarity about what they are purchasing. The shift from physical to digital media has allowed companies to exert more control over access, making laws like AB 2426 essential for empowering consumers.
As digital marketplaces continue to expand, similar legislation could emerge in other states or countries, prompting companies across various industries to reassess how they present digital purchases. The trend toward greater transparency may redefine consumer expectations and regulatory frameworks in the digital age.
