Upcoming Requirements for Digital Goods and Subscription Offers in California

The state of California has new and amended laws imposing requirements on businesses that offer digital goods or subscriptions.

Assembly Bill 2426, which goes into effect January 1, 2025, extends California’s false advertising laws to address the offering for sale of licenses to digital goods. The new law is intended to ensure that consumers understand when they are purchasing only a license to such digital goods as games, movies, music, and books.

Assembly Bill 2863, which goes into effect on July 1, 2025, is a significant update to the state's regulations on automatic renewal and continuous service offers and will impose new requirements related to price changes, recordkeeping, and renewal reminders.

Read the full Update here.