On Sep. 10, CAL LEG enrolled bill on digital goods false advertising.
CAL LEG passed bill AB 2426 on protections for false advertising for digital goods.
Prohibits use of false or misleading advertising claims for digital products and goods.
Adds Section 17500.6 to the Business and Professions Code, CAL LEG 175000.6
Bill Provisions
The bill would, with certain exceptions, prohibits seller of digital goods from advertising or offering digital good for sale using the terms buy, purchase, or similar language.
Reasonable person would understand terms to imply full ownership of the digital good.
Would also prohibit seller from using these alongside option for time-limited rental.
However, the wording restrictions would apply only if the seller does not receive an affirmative acknowledgment from the purchaser at the time of the transaction.
Alternatively, seller must provide a clear and conspicuous statement to the consumer.
Legislative History
On Feb. 13, 2024, bill introduced in Assembly; on May 22, 2024, bill passed Assembly.
On May 23, 2024, bill introduced in Senate; on Aug. 27, 2024, bill passed in Senate.
On Sep. 9, 2024, bill was enrolled and is pending Governor review and further action.
Effectiveness
CAL bills typically go into effect January 1 of year following enactment, Jan. 1, 2025.
