Digital sellers could not call a license a purchase without clear warnings

A seller could not offer or advertise a digital good using "buy," "purchase," or similar ownership words, or next to a time-limited rental option, unless it follows one of two disclosure paths. This covers digital movies and videos, audio works such as songs and audiobooks, e-books, digital codes, and apps or games, including add-ons. Cable, satellite, and other TV, video, or radio services are not covered. Path one: at each sale, the seller gives a full list of license limits and when access may be revoked, notice the product may differ from the original, and gets the buyer's acknowledgment of the license and revocation notices. Path two: before each sale, the seller shows a clear plain-language statement that buying is a license, with a link or QR code to the terms. Acknowledgments and statements must be separate from the other terms the buyer agrees to.

If license terms change after a sale in a way that materially cuts the buyer's access, the seller would have to offer a prorated refund. This applies to buyers of digital goods whose access is materially affected by a later license change. The refund shrinks on a straight-line basis each year from the purchase date, and none is available after five years. No refund is available after five years from the date of purchase.

The rules would not apply to several kinds of digital goods, and sellers could still use copy protection. Exempt items include subscription access, free items, goods the seller cannot revoke after sale such as permanent offline downloads, blockchain assets like NFTs, and noncommercial items from libraries, schools, or open-source platforms. The section does not require anyone to download a digital good or ban storing one on a server. Sellers may still use digital rights management technology and are not told which technical formats to offer.

A violation would be an unlawful business practice, and the attorney general could investigate and take action. This applies to sellers of digital goods covered by the section.