Arizona bill would force companies to disclose that digital ‘purchases’ aren’t permanent
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Arizona House unanimously passes bill requiring companies to disclose when digital purchases can be altered or revoked.
This article was originally published by Arizona Mirror.
A bill that would make companies that sell digital downloads or streams of movies and video games disclose to customers that they’re not purchasing permanent copies of that media got unanimous support Monday in the Arizona House of Representatives.
Rep. Nick Kupper, R-Surprise, thinks Arizona should follow California and mandate that companies disclose when consumers are obtaining a revocable license on digital goods as opposed to full ownership.
Kupper’s House Bill 2010 would make it illegal for a seller of a digital good to advertise that good using the terms “buy” or “purchase” if they do not inform consumers of restrictions on that purchase. Those restrictions include the possibility that the product could be altered or access to it could be revoked in the future.
Large companies like Amazon and Sony have come under fire in recent years after consumers found that TV shows, movies and video games they purchased were removed from their digital libraries. Many consumers are unaware that when they “buy” a movie or TV show online they are really only purchasing a license agreement. That means consumers don’t really own much of the content they purchase.
Last year, California passed a similar bill. Kupper previously told the Arizona Mirror that a constituent showed him the California bill and asked if he’d propose something similar.
The bill also includes a provision that says a seller must notify a consumer that the seller could modify the content, something that comes from Kupper’s own experience when a digital good he purchased was altered after he paid for it.
In 2020, the creator of the TV comedy series “The Office” deleted a scene from an episode of the show that included a character who wore blackface. Kupper said he noticed when rewatching the episode that the scene was gone.
The bill would require that a seller of digital goods provide a consumer with a list of the restrictions and conditions they are agreeing to under the license, a notice that the license may be altered from its original version, a notice that the license may be revoked and the statements must be clear and conspicuous.
If passed and signed into law, consumers would be asked to acknowledge that they understand these terms and conditions, which would be distinct from other terms and conditions that consumers are used to agreeing to online.
Any company that violates the disclosure could be investigated for violating the state’s consumer fraud act. Additionally, any consumer who is “aggrieved by a violation” could bring a civil action to “recover actual damages, reasonable attorney fees and court costs,” and if the “violation is wilful or knowing,” the court may award additional damages.
The bill does not apply to subscription-based streaming services, free services or educational goods provided by libraries or public institutions.
“My bill here was not to step on the toes of businesses,” Kupper said on the House floor Monday. “This is a good consumer protection act. This is not something that is going to be hard on companies.”
He noted that he hasn’t had any pushback and the bill passed out of the House Monday afternoon with unanimous approval. It will next head to the Senate for consideration, and if it wins approval there, it will then head to Gov. Katie Hobbs for either a signature or veto.