In a nutshell: Senator Ron Wyden is calling on the Federal Trade Commission to ensure consumers understand what they're actually buying when they purchase digital goods. In a letter to newly appointed FTC Chair Andrew Ferguson, Wyden urged the agency to issue guidance requiring online storefronts to clarify to customers whether a digital product is a permanent purchase or merely a temporary license.
In a letter obtained by The Verge, Wyden pointed out that many consumers don't realize digital purchases don't come with the same rights as physical ones. If you buy a book, it's yours – you can lend it, resell it, or keep it forever. However, digital versions often come with restrictions that aren't immediately clear. Furthermore, many platforms reserve the right to remove access, alter content, or revoke purchases entirely – sometimes without warning.
The senator pointed to several recent examples of consumers losing access to content they thought they owned.
In late 2023, Sony informed customers they would no longer be able to watch Discovery Channel content they had previously purchased. A last-minute deal prevented users from losing access, but the situation highlighted how unstable digital ownership can be. Something similar happened when Sony merged Funimation and Crunchyroll. Many users found that anime titles they had paid for were no longer available in their libraries. Meanwhile, companies like Amazon have retroactively edited e-books after purchase and will soon prevent users from downloading Kindle books to their computers for offline storage.
Wyden's letter comes as lawsuits against Apple and Amazon challenge how they market digital goods. The plaintiffs argue they were misled by "buy" buttons that implied full ownership, only to discover later they had purchased revocable licenses. California recently addressed this issue with a new law requiring online stores to clearly state when digital products are licensed rather than owned outright.
Wyden called on the FTC to step in at the federal level, arguing that companies must inform consumers precisely what they're paying for before completing a purchase rather than burying the terms in a lengthy EULA. He suggested that online retailers clearly state key details, like how long access is guaranteed and whether a purchase can be transferred or resold. Many consumers may not realize that digital purchases often have many strings attached. Without clear disclosure, they could believe they have permanent access, only to discover later that a company can revoke it.
With more people purchasing digital content instead of physical copies, Wyden wants more transparent rules to ensure buyers make informed decisions when purchasing digital goods. He requests that the FTC implement and enforce new guidance for the digital age. Steam began using more transparent language last October without the FTC ordering it. Whether the Commission will take action remains uncertain.
FTC asked to implement and enforce clearer rules on digital product ownership
.. and for that reason, physical books, movies, TV shows, games, etc.
