Consumers across America pay full price for digital products like video games, movies, music, books, and software, expecting true ownership. But current laws only grant temporary licenses, allowing companies to revoke access at any time. This leaves millions—including students, families, professionals, and media collectors—vulnerable to losing their digital libraries without warning or compensation.

Without this legislation, consumers’ digital investments are at the mercy of corporate policies. Companies can revoke access, impose restrictions, or deny refunds, leaving consumers with financial losses and no recourse. Digital media spending in the U.S. is projected to reach $117.6 billion by 2024. Failing to act leaves this massive value at risk, while companies profit without accountability.

Digital platforms are growing, and more products are only available online. Current consumer protection laws are outdated and leave digital buyers without ownership rights. Passing this Act would ensure digital content is protected like physical goods, safeguarding the digital investments people rely on daily. This is the moment to establish fair digital ownership protections.

The Digital Ownership and Consumer Protection Act would create the following essential protections and rights for consumers:

Permanent Access Rights
Consumers who pay full price for digital content would gain the legal right to retain access to their purchases indefinitely, just as they would with physical goods. This means that companies could not arbitrarily revoke or limit access to purchased digital content, even if a platform shuts down or changes its terms. Access could only be revoked in clear cases of consumer misconduct, such as illegal activity. This guarantees that consumers are truly buying—not just renting—digital content.

Transparency and Disclosure Requirements
Many digital purchases today come with hidden restrictions or vague terms of service that consumers may not fully understand. This Act would require companies to display all Digital Rights Management (DRM) limitations, refund policies, and other critical terms in plain language at the point of sale. Companies would be prohibited from hiding restrictions in fine print, ensuring that consumers are fully informed of any limitations on their purchases before buying.

Ownership Rights Similar to Physical Goods
The Act would grant consumers the right to transfer, resell, or retain their digital content in ways similar to how they handle physical goods. For example, a person could resell a video game or transfer ownership of an e-book to a friend, similar to how they would sell or gift a physical book. This provision would effectively end restrictive licensing agreements that prevent digital resale, creating a more open digital marketplace.

Escrow Services for Long-Term Access
To protect consumers in the event of a platform going out of business, the Act mandates that all purchased digital content be registered with an independent escrow service. This service would act as a third-party guarantor of long-term access, ensuring that consumers retain access to their digital content for at least 25 years, even if the original platform closes. Platforms would be required to contribute a portion of their revenue to an escrow trust fund dedicated to maintaining consumer access or providing refunds if access cannot be guaranteed.

Tiered Penalties for Non-Compliance
Companies that violate the provisions of this Act would face tiered penalties, ensuring that larger platforms pay substantial fines for abuses. Penalties are based on the severity of the violation and the platform’s annual revenue, with intentional or repeated violations subject to criminal penalties, including potential imprisonment for executives. This enforcement structure provides meaningful deterrence against exploitative practices, holding companies accountable for respecting consumer ownership rights.

Adaptability to Emerging Technologies
The Act is designed to stay relevant as new technologies emerge, applying to current digital content as well as future digital assets such as blockchain-based products (NFTs), AI-generated media, and virtual reality experiences. This adaptability ensures that consumers are protected not only today but also as new digital business models develop, preventing companies from sidestepping protections by creating novel formats or technical barriers.

International Compliance and Cross-Border Portability
As many digital platforms operate globally, this Act would require companies to comply with international consumer protection standards, ensuring that U.S. consumers are covered under the highest level of protections. The Act also guarantees cross-border data portability, so consumers can retain access to their digital content even when moving between countries or regions. This feature prevents companies from using geographic restrictions to limit consumer access to purchased content.

Consumer Education and FTC Oversight
Finally, the Act requires the Federal Trade Commission (FTC) to create a Digital Ownership Portal where consumers can access clear information on their rights under this law. This portal would include FAQs, guides on digital ownership rights, and a straightforward complaint process. Digital platforms would be required to prominently link to this portal, ensuring that all consumers are aware of their rights and have a means of recourse if those rights are violated.

Let’s hold companies accountable and demand digital ownership rights that allow us to enjoy, transfer, and protect our digital libraries. By passing the Digital Ownership and Consumer Protection Act, we can establish a fair and transparent digital marketplace that respects consumer rights. I am just trying to do my part to make a difference and I know many people, no matter of political ideology, feel the same way about this practice. If you feel the same, please sign.

 

CURRENT DRAFT - OCT 2024:

Section 1: Short Title
This Act may be cited as the "Digital Ownership and Consumer Protection Act."

Section 2: Findings and Purpose

(a) Findings

Consumers purchase digital content at full retail price, expecting ownership similar to physical goods. Current licensing models treat these purchases as temporary licenses.

Many digital platforms use End-User License Agreements (EULAs) that allow them to alter, revoke, or limit access to purchased digital content without recourse for consumers, leading to financial losses.

Emerging technologies, including blockchain-based assets, AI-generated media, and virtual reality experiences, require adaptable consumer protection laws. 

Consumers often lack awareness of limitations on their digital purchases due to complex EULAs and inconsistent platform practices.

(b) Purpose

Establish permanent ownership rights for consumers purchasing digital content at full price.

Prevent platforms from unilaterally revoking access to purchased content except under specific conditions.

Update U.S. copyright and consumer protection laws to reflect digital content models.

Introduce phased implementation measures, compliance incentives, and adjustments for platforms to adapt to the Act’s requirements.

Section 3: Definitions

Digital Content: Any media or content sold or distributed in digital format, including video games, movies, music, e-books, software, NFTs, AI-generated content, and virtual reality experiences.

Platform: Any retailer, distributor, or service offering digital content to consumers, including digital marketplaces such as Steam, Epic Games, Amazon, PlayStation Store, Xbox, and similar services.

Purchase: A transaction in which the consumer pays full retail price in exchange for access to digital content, with an expectation of permanent ownership, distinct from rental or subscription-based models.

Ownership: A consumer's right to access, use, transfer, or resell purchased digital content without revocation by the platform, except under limited conditions specified in this Act.

Escrow Service: A third-party service guaranteeing long-term availability of digital content, protecting consumer access in cases of platform insolvency or operational closure.

Compliance Phasing: An implementation structure allowing platforms to adopt the Act’s requirements gradually, with set deadlines and interim milestones to address technological or operational adjustments.

Section 4: Consumer Rights for Digital Content

(a) Right to Permanent Access

Consumers who purchase digital content at full price are entitled to permanent access to that content, regardless of the status of the platform, operational changes, or terms of service updates.

Platforms may only revoke access under material breach by the consumer, defined as illegal activity or direct violations of terms, where such terms are provided in clear, plain language.

(b) Transferability of Digital Content

Consumers have the right to transfer their purchased digital content to another account, platform, or service, ensuring digital content functions similarly to physical goods in terms of portability.

Platforms must implement standardized data portability protocols to support consumer transfers without compromising quality or functionality.

(c) Consumer Refunds and Resale Rights

Platforms must offer no-questions-asked refunds within the first 30 days following a digital content purchase. Refunds shall be processed within 7 business days of request submission.

Consumers shall have the right to resell or lease their digital content through authorized secondary marketplaces, ensuring value retention and flexibility similar to that of physical goods.

Section 5: Amendments to Title 17, U.S. Code (Copyright Law)

(a) First Sale Doctrine Extension

The first-sale doctrine under Section 109 of Title 17, U.S. Code, shall be extended to cover digital content. Consumers who purchase digital content at full price shall retain the same rights to transfer, resell, or retain content as they would with physical goods.

Platforms shall facilitate secondary resale markets for digital content, enabling consumer transfers in compliance with existing ownership rights.

(b) Digital Rights Management (DRM) Limitations

DRM measures must not interfere with consumer ownership rights, including access, transferability, or resale. Any DRM restrictions that conflict with this Act shall be deemed void and unenforceable.

Platforms must disclose all DRM-related restrictions in plain language at the point of sale, ensuring consumers are fully informed.

Section 6: Escrow Services and Long-Term Access Guarantees

Platforms are required to register all digital content purchases with an independent escrow service, which guarantees long-term access for consumers, with a minimum period of 25 years from the purchase date.

Platforms must contribute 5% of annual revenue to a digital content escrow trust fund, managed by a third-party entity. This fund will provide access or refunds for consumers in cases where a platform ceases operations or fails to fulfill its access obligations.

Section 7: Penalties and Enforcement

(a) Tiered Penalties Based on Company Size and Violation Severity

Penalties for violations shall be scaled based on the platform’s annual revenue and the severity of the violation: Minor violations (e.g., lack of DRM disclosure): $10,000 per affected consumer.

Moderate violations (e.g., failure to provide refunds): $50,000 per affected consumer.

Severe violations (e.g., permanent access revocation): Up to 20% of annual gross revenue.

Willful violations shall result in criminal penalties for executive officers, including imprisonment of up to 5 years for continued non-compliance.

(b) Compliance Ratings and Public Disclosure

Platforms must publicly disclose compliance ratings based on FTC audit outcomes. Non-compliant platforms shall display their ratings on their website, with annual updates.

(c) Mediation Process for Dispute Resolution

Before initiating legal action, consumers must participate in a mediation process facilitated by the FTC. Mediation is free of charge to consumers and must aim for resolution within 30 days.

Section 8: International Compliance and Cross-Border Data Portability

Platforms operating internationally must align with GDPR and equivalent standards to ensure U.S. consumer protections are harmonized globally, preventing regulatory evasion.

Consumers retain cross-border data portability rights, allowing them to transfer digital content internationally without losing ownership or access rights.

Section 9: Future-Proofing and Adaptability

The FTC shall have the authority to issue updated compliance standards for new and evolving technologies, including AI-generated content, blockchain-based assets, and metaverse platforms.

Platforms introducing new digital models must submit consumer impact assessments to the FTC, detailing compliance measures with the Act.
Section 10: Consumer Education and Transparency

Platforms must provide plain-language summaries of key terms, including refund policies, DRM restrictions, and ownership rights, to consumers prior to purchase.

The FTC shall establish a Digital Ownership Portal with FAQs, consumer rights guides, and tools for complaint submission. Platforms must publicize this portal on their websites.

Section 11: Implementation Timeline and Compliance Phasing

The FTC shall establish a phased compliance schedule for complex requirements, including escrow services and data portability standards. Platforms will have up to 24 months for full compliance, with specific interim milestones.

An economic impact study shall be conducted within the first 12 months to assess industry costs associated with compliance. The FTC will use this data to adjust timelines if necessary.

Section 12: Effective Date and Retroactive Application

This Act shall take effect 180 days after enactment. It will apply to all digital content purchases made on or after the effective date, with retroactive protections for existing digital libraries specified in Section 4.