Bill

Bill > HB208


MD HB208

MD HB208
Consumer Protection – False Advertising – Digital Goods


summary

Introduced
01/08/2025
In Committee
03/27/2025
Crossed Over
02/25/2025
Passed
04/03/2025
Dead
Signed/Enacted/Adopted
04/22/2025

Introduced Session

2025 Regular Session

Bill Summary

Prohibiting a person that is a seller from advertising or offering for sale a digital good using certain terminology unless, before executing the sale, a certain affirmative acknowledgment is received from the purchaser or a certain clear and conspicuous statement is provided by the seller; and establishing that a violation of the Act is an unfair, abusive, or deceptive trade practice subject to certain enforcement and penalty provisions.

AI Summary

This bill addresses consumer protection in digital goods sales by establishing new requirements for how sellers can advertise and sell digital products like applications, games, audiobooks, videos, and digital codes. Specifically, the bill prohibits sellers from using advertising language that implies unrestricted ownership of a digital good unless they first obtain an explicit acknowledgment from the purchaser or provide a clear and conspicuous statement explaining that the customer is actually purchasing a limited license. The acknowledgment must clearly state that the purchaser is receiving a license, understand the restrictions on that license, and recognize that the seller can unilaterally revoke access to the digital good. The bill defines key terms like "digital good" and "clear and conspicuous" and establishes that violations are considered unfair, abusive, or deceptive trade practices subject to enforcement under Maryland's commercial law. The bill does not apply to subscription services, free digital goods, or permanently downloadable content, and it will take effect on October 1, 2025. By requiring more transparent communication about the nature of digital product purchases, the legislation aims to protect consumers from potentially misleading marketing practices in the digital marketplace.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Approved by the Governor - Chapter 206 (on 04/22/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...