Class Action Under California’s New Digital Goods Law Hits Video Games: What to Know (via Passle)

January 23, 2026 - 15:03

A significant new California consumer protection law is now being directly applied to the video game industry, leading to a surge of class action lawsuits against major publishers and developers. The legislation, known as AB 2426, took effect at the start of last year and imposes strict new requirements on companies selling digital goods, including downloadable content, virtual currency, and in-game items.

The law mandates that these companies must provide consumers with clear itemized receipts for their digital purchases. Crucially, it also requires sellers to provide a method for consumers to permanently cancel and delete their digital accounts, along with any associated personal information. Legal complaints allege that numerous prominent video game companies are failing to comply with these specific provisions, thereby violating the statute.

Industry analysts suggest this legal shift could force a fundamental change in how gaming companies manage user accounts and data. For consumers, the lawsuits seek potential refunds or damages for alleged non-compliance. The outcomes could set important precedents for user rights and data control in the rapidly expanding digital marketplace for games and virtual goods. Companies across the tech sector are watching closely as the courts interpret this landmark state legislation.