Bill

Bill > A08471


NY A08471

Prohibits a seller of a digital good from advertising or offering for sale a digital good to a purchaser with the terms "buy," "purchase," or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good, or alongside an option for a time-limited rental, unless the seller receives at the time of each transaction an affirmative acknowledgment from the purchaser, or the seller provides to the consumer before executing each transaction a


summary

Introduced
05/16/2025
In Committee
05/16/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the general business law, in relation to disclosures by sellers of digital goods

AI Summary

This bill aims to provide consumer protection in digital goods transactions by requiring sellers to clearly disclose the nature of digital purchases as licenses rather than outright ownership. The bill defines various types of digital goods, including digital audio works, audiovisual works, books, applications, and codes, and establishes new disclosure requirements for their sale. Specifically, when sellers advertise digital goods using terms like "buy" or "purchase," they must either obtain an affirmative acknowledgment from the purchaser that confirms they are receiving a limited license with specific restrictions, or provide a clear and conspicuous statement explaining that the purchase is a license with a link to full terms and conditions. The acknowledgment or statement must be separate from other transaction terms and cannot be buried in fine print. The bill includes exceptions for subscription-based services, free digital goods, and digital goods that can be permanently downloaded offline. By mandating these disclosures, the law seeks to prevent consumer confusion about the actual ownership and usage rights of digital products, ensuring that purchasers understand the limited nature of their digital acquisitions. The law will take effect 90 days after being signed.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

referred to consumer affairs and protection (on 05/16/2025)

bill text


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