Sen. Ron Wyden (D-OR) has sent a letter to Federal Trade Commission (FTC) chair Andrew Ferguson urging the FTC to require that companies admit when you’re not really buying an ebook or video game.
Wyden’s letter, shared with noti.group, requests guidance to “ensure that consumers who purchase or license digital goods can make informed decisions and understand what ownership rights they are obtaining.”
Wyden wants the guidance to include how long a license lasts, what circumstances might expire or revoke the license, and if a consumer can transfer or resell the license. The letter also calls for the information “before and at the point of sale” in a way that’s easily understandable. “To put it simply, prior to agreeing to any transaction, consumers should understand what they are paying for and what is guaranteed after the sale,” Wyden says.
Frequently, when you buy digital copies of things like movies, games, music, or books, you don’t actually own that thing — just a license to access it. As a result, you might unexpectedly lose access to games because of PlayStation Network account bans or no longer be able to download and transfer Kindle books to your computer over USB because of an Amazon change.
Last year, California Governor Gavin Newsom signed a law banning digital stores from using words like “buy” or “purchase” unless they disclose that you’re just licensing the content they sell, and shortly after, Valve updated its Steam checkout screen to note just that.
“The shift from physical to digital goods presents some complex legal questions,” Wyden says in the letter. “One thing is clear, however: consumers deserve transparency about their ownership rights in digital goods. Guidance from the FTC on this issue will help ensure that digital goods sellers are aware of best practices and that American consumers can make informed buying decisions.”
We’ve reached out to the FTC for comment.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
