In case you promote digital merchandise — like software program, streaming content material, or different intangible items — to prospects in California, you might have heard a few new shopper safety regulation: AB 2426, which got here into impact on January 1, 2025.
This state regulation goals to make sure that when buying licensed digital items, shoppers perceive the related limitations and phrases beforehand, together with that the products are usually not being offered outright.
Right here’s what you’ll want to know:
- AB 2426 is a California regulation which particularly addresses the sale or promoting of licensed digital items, the place the vendor can prohibit or revoke utilization rights.
- For relevant transactions, the regulation requires a transparent licence disclosure (and generally a shopper acknowledgment) relating to the character and restrictions of the license — placing it solely in your Phrases and Situations is inadequate.
- Transparency is essential to constructing belief and future-proofing in opposition to related rules elsewhere.
- We propose you seek the advice of authorized counsel to substantiate you’re assembly all necessities in your distinctive state of affairs.
Does AB 2426 apply to me?
If your corporation sells or advertises licenses to digital items in California and makes use of phrases like “buy” or “purchase” to explain these transactions, this regulation doubtless applies. We advocate talking with a certified lawyer for an individualized evaluation.
Even when the regulation doesn’t at present apply in each jurisdiction, it’s price understanding greatest practices for clear communication about digital merchandise. Under, we define functionalities WooCommerce supplies that may show you how to meet your compliance obligations.
Please observe: The knowledge on this put up is for normal steering solely and isn’t authorized recommendation. At all times seek the advice of with a certified lawyer for recommendation particular to your corporation.
AB 2426 is a California regulation designed to assist shoppers perceive their rights (and any restrictions) when acquiring licensed digital content material. Typically talking, this regulation requires sure disclosures when companies provide or promote licenses for digital items to California-based patrons.
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 might result in disputes or authorized ramifications.
- Greatest observe: Readability round digital items can construct buyer belief throughout all areas.
In case your authorized counsel advises you to incorporate extra 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 quick 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 possibly can create customized attributes (e.g. “Utilization Phrases” or “Licence Info”) and show them on the product web page. This method highlights key particulars individually from the principle description.
- Block-based checkout: In case you’re utilizing a block-based checkout (a part of the newer WooCommerce expertise), you possibly can insert a further block to show a discover or reminder through the checkout course of, ought to your authorized counsel advocate it.
These strategies assist you to place any really helpful disclosures precisely the place prospects will see them — whether or not that’s whereas searching product info or finalizing their buy.
Even in case you’re not sure whether or not your product is legally “licensed,” it’s sensible to:
- Examine your phrases and circumstances: Do you reserve the precise to revoke entry? In that case, you’re doubtless granting a license.
- Assessment present language: Phrases like “personal” or “buy outright” could be deceptive in case you’re really licensing — as an alternative of transferring possession of — digital items.
- Keep knowledgeable: Though AB 2426 is a California regulation, it could possibly be replicated elsewhere. Taking a clear method now might show you how to keep away from future compliance points.
As a result of each enterprise is totally different, remember to search recommendation from a certified lawyer relating to your particular merchandise, disclosure language, and licensing construction. Regional rules, 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 somewhat than offered, you possibly can scale back confusion and shield your corporation. When you have additional questions, take into account consulting a authorized skilled or discussing your method with the WooCommerce group.
Blissful promoting!
James serves because the Core Product Supervisor for WooCommerce. He has labored with WordPress since 2009, and launched quite a few free and premium WooCommerce plugins earlier than becoming a member of the Woo crew in 2023.