If you are selling digital products in California – such as software, streaming content or other intangible goods, you may have heard of the new Consumer Protection Act: AB 2426, which came into force on January 1, 2025.
The aim of this state law is to ensure that consumers understand the limitation and conditions of the list in the purchase of the digital goods license, including the fact that the goods are not directly issued.
Here’s what you need to know:
- AB 2426 is a Californian law that specifically deals with the sale or advertising of digital goods of a license where the seller can limit or cancel the rights to use.
- For valid transactions, the law requires a clear license to publish (and sometimes a consumer confirmation), which focuses on the nature and restriction of the license – only in your Terms and Conditions is insufficient.
- Transparency is the key to building trust and resistance to the future to similar regulations elsewhere.
- We recommend that you consult a legal advisor to confirm that you meet all the requirements for your unique situation.
Does AB 2426 APRY have for me?
If your company sells or advertises licenses to digital goods in California and uses conditions such as “purchase” or “buy” to describe these transactions, this law is probably amazing. We recommend talking to qualified Attortey for individualized rating.
Although the law currently does not apply in every jurisdiction, it is worth understanding the proven procedures for transparent communication on digital products. Below we will outline the functioncitus wooocommerce providers that can help you meet your bonds compliance.
Please note: Information in this post is only for general instructions and it is not a legal advice. Always consult a qualified council on the Council specific to your business.
AB 2426 is a Californian law to help consumers understand their rights (and any restrictions) in obtaining licensed digital content. In general, this law requires some publication when it offers or advertises lists for digital goods by the buyer based in California.
Why does it matter
- Transparency: California wants to ensure that consumers know that they are seeking a license, not ownership, a digital product.
- Compliance: Failure to provide these publications on the product itself could lead to disputes or legal consequences.
- Proven procedures: The clarity around digital goods can build customer confidence in all regions.
If your Legal Council recommends you to include additional information or publication for your digital product, WooCommerce has several ways to do this for your own code:
- Product description or short description: Add the appropriate text or exclusion of liability directly to the product description so that customers can see it when browsing the product.
- The attributes of the product: You can create your own attributes (eg “User Terms” or “Information License”) for the transferred statements) and display them on the product page. This approach emphasizes key details separately from the main description.
- A box based on a block: If you are using the box office based on the block (part of the newer WooCommerce experience), you can insert another block that displays a notice or reminder during the check process if your legal council recommends it.
These methods allow you to place any disclosure of information exactly where customers see them – while it is when you browse information about products or complete their purchase.
This is if it is uncertain where your product is legally “license” is wise:
- Check your terms and conditions: Do you reserve the right to cancel access? If so, you are likely to grant a license.
- Existing language check: Conditions such as “own” or “Purchase of direct” may be misleading if you actually licensed – instead of transferring ownership – digital goods.
- Informed: Although AB 2426 is a Californian law, it could be replicated elsewhere. Accepting a transparent approach can help you avoid future compliance.
Becuse Every business is different, be sure to find advice from qualified clothing looking for your specific product, disclosure language and licensing structure. Regional regulations, unique product categories and exerting electronic trading laws can affect how you represent digital offers.
We hope this will help you understand AB 2426 in California and its potential consequences for your WooCommerce trade. By clarifying that digital products are RASKther license than sold, you can reduce confusion and protect your business. If you have other questions, consult a legal professional or discuss your approach with the WooCommerce community.
Happy sale!
James serves as the main product manager for WooCommerce. He has been working with WordPress since 2009 and releases a number of free and premium WooCommerce plugins before entering the WOO team in 2023.