For those who promote digital merchandise — like software program, streaming content material, or different intangible items — to prospects in California, you could have heard a few new client safety legislation: AB 2426, which got here into impact on January 1, 2025.
This state legislation goals to make sure that when buying licensed digital items, shoppers perceive the related limitations and phrases beforehand, together with that the products usually are not being bought outright.
Right here’s what that you must know:
- AB 2426 is a California legislation that particularly addresses the sale or promoting of licensed digital items, the place the vendor can limit or revoke utilization rights.
- For relevant transactions, the legislation requires a transparent license disclosure (and typically a client acknowledgment) relating to the character and restrictions of the license — placing it solely in your Phrases and Circumstances is inadequate.
- Transparency is essential to constructing belief and future-proofing in opposition to related laws elsewhere.
- We recommend you seek the advice of authorized counsel to substantiate you’re assembly all necessities in your distinctive scenario.
Does AB 2426 apply to me?
If your small business sells or advertises licenses to digital items in California and makes use of phrases like “buy” or “purchase” to explain these transactions, this legislation probably applies. We advocate talking with a certified legal professional for an individualized evaluation.
Even when the legislation doesn’t at the moment apply in each jurisdiction, it’s value understanding finest practices for clear communication about digital merchandise. Beneath, we define functionalities WooCommerce offers that may enable you meet your compliance obligations.
Please word: The knowledge on this put up is for common steerage solely and isn’t authorized recommendation. All the time seek the advice of with a certified legal professional for recommendation particular to your small business.
AB 2426 is a California legislation designed to assist shoppers perceive their rights (and any restrictions) when acquiring licensed digital content material. Usually talking, this legislation requires sure disclosures when companies supply or promote licenses for digital items to California-based consumers.
Why it issues
- Transparency: California desires to make sure shoppers know they’re receiving a license, not possession, of the digital product.
- Compliance: Failing to supply these disclosures on the product web page itself may result in disputes or authorized ramifications.
- Finest observe: Readability round digital items can construct buyer belief throughout all areas.
In case your authorized counsel advises you to incorporate further info or disclosures in your digital merchandise, WooCommerce has a number of built-in methods to take action — no customized code wanted:
- Product description or brief description: Add the related textual content or disclaimers on to the product description space so prospects see it once they view the product.
- Product attributes: For concise statements, you may create customized attributes (e.g. “Utilization Phrases” or “Licence Info”) and show them on the product web page. This strategy highlights key particulars individually from the principle description.
- Block-based checkout: For those who’re utilizing a block-based checkout (a part of the newer WooCommerce expertise), you may insert an extra block to show a discover or reminder through the checkout course of, ought to your authorized counsel advocate it.
These strategies mean you can place any advisable disclosures precisely the place prospects will see them — whether or not that’s whereas looking product info or finalizing their buy.
Even should you’re not sure whether or not your product is legally “licensed,” it’s clever to:
- Verify your phrases and situations: Do you reserve the best to revoke entry? In that case, you’re probably granting a license.
- Evaluation present language: Phrases like “personal” or “buy outright” may be deceptive should you’re truly licensing — as a substitute of transferring possession of — digital items.
- Keep knowledgeable: Though AB 2426 is a California legislation, it might be replicated elsewhere. Taking a clear strategy now might enable you keep away from future compliance points.
As a result of each enterprise is completely different, you’ll want to search recommendation from a certified legal professional relating to your particular merchandise, disclosure language, and licensing construction. Regional laws, distinctive product classes, and evolving ecommerce legal guidelines might all affect the way you current your digital choices.
We hope this helps you perceive California’s AB 2426 and its potential implications in your WooCommerce retailer. By clarifying that digital merchandise are licensed quite than bought, you may scale back confusion and defend your small business. If in case you have additional questions, think about consulting a authorized skilled or discussing your strategy with the WooCommerce group.
Completely happy promoting!
James serves because the Core Product Supervisor for WooCommerce. He has labored with WordPress since 2009, and launched a lot of free and premium WooCommerce plugins earlier than becoming a member of the Woo staff in 2023.
