In September of 2024, California passed AB2426, which prohibits words like "buy" and "purchase" when advertising and selling software where the purchaser is only receiving a license to the software (see our previous writing on it here). Since that law has passed, many businesses have begun complying globally. Maryland has since passed a similar law, and New York is following suit. As more states adopt this compliance requirement, the risk of non-compliance increases significantly, and businesses should carefully revisit their purchase flows and advertising materials.
Maryland
Maryland passed House Bill 208, which went into effect on October 1, 2025, governing advertising and sales practices with respect to digital goods. Here's a quick overview of what the law states, which tracks California's AB2426:
- "Digital Goods" is defined broadly. It includes games, audio, audiovisual works, books, and even codes (e.g., promo or access codes).
- Assuming the following are true, sellers must obtain
affirmative acknowledgment from buyers that they understand:
- they are getting a license to the digital good, not full ownership;
- all the restrictions and conditions of that license; and
- the seller may unilaterally revoke access under certain conditions.
- Sellers have to provide a "clear and conspicuous"
statement that:
- states, in plain language, that buyers are only receiving a license, not ownership;
- provides digital access to the license details, terms, and conditions; and
- is separate from other legal or marketing text.
- The law does not apply in the following cases:
- If a seller is offering access only for the duration of a subscription (e.g., monthly app access), this rule does not apply.
- If the digital good is provided for free, compliance is not necessary.
- If after purchase, the buyer can download the digital good for permanent offline use (for example, to an external drive) and the seller can't revoke access, the law doesn't apply. This would apply to, for example, premium games that can be downloaded and played offline.
- Non-compliance is per se considered an "unfair, abusive, or deceptive" trade practice under Maryland consumer protection law.
New York
The New York legislature is considering Assembly Bill A8471, which also tracks California's AB2426 and Maryland's House Bill 208.
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