Senator Ron Wyden, one of the most technologically adept and privacy-oriented U.S. senators, is pushing the FTC for rules that would ensure people own their digital purchases.
In today’s world of streaming services and digital distribution platforms, it has become all too common for companies to suddenly inform customers that the movies, TV shows, music, video games, and other digital content they previous purchased would no longer be available.
Senator Wyden addresses those issues in a letter shared with The Verge, citing an earlier FTC finding that many companies are using the word “purchase” loosely.
Over the last several years, the market for creative works—such as books, music, movies, and games—has undergone a major shift from physical to digital, raising questions about how traditional consumer protections and legal paradigms translate into the digital environment. A consumer who buys a book, for example, owns that copy and can sell, transfer, and continue toaccess it in perpetuity. But a consumer who “purchases” the same title as an e-book is usually obtaining a license, subject to certain limitations by the seller. As the FTC noted in a “Consumer Alert” from last year, “what [a consumer] really got when [he or she] clicked ‘buy’ is often merely a license to access the content. This fact is often explained only in fine print in the termsof service — terms that the seller can usually change at will.”1 The lack of transparency works against consumers, who are paying more but getting less than they expect, as well as missing achance to comparison shop and seek “another site or service with different terms, or even something [they] can hold in [their] hands.”
The letter then goes on to specifically call out Sony, Amazon, and Apple for this kind of behavior.
There is no shortage of instances in which this ambiguity has jeopardized consumers’ access tothe digital goods they have purchased. In December 2023, for example, Sony announced to users that “you will no longer be able to watch any of your previously purchased Discovery content,”including popular shows like “MythBusters,” “Cake Boss,” and “Deadliest Catch.” Consumers’access was preserved only after Sony and Discovery reached a last-minute licensing deal.Similarly, when Sony merged its two anime-focused streaming services, Funimation and Crunchyroll, Funimation users who were moved to the Crunchyroll platform lost access to titles in their library because “Crunchyroll does not currently support Funimation Digital copies.”3 In addition to losing access altogether, consumers have also had their digital content changed without their knowledge. Earlier in 2023, e-books, including titles from popular authors like Roald Dahl, R.L. Stine, and Agatha Christie, that had been published and sold in one form were retroactively edited without notice.4 Amazon has also recently announced that as of February 26,2025, Kindle owners will no longer be allowed to download or back up their purchased e-books to their computers—making it difficult for consumers to access their e-books offline and maintain access to the book edition they purchased.
Consumers’ ownership rights in digital products are currently being considered by multiplecourts, including suits against Amazon and Apple.6 Plaintiffs in these cases say they clicked“buy” to download digital goods that they believed they would own—and that they would nothave paid the full purchase price if they knew it was effectively a rental with terms subject tochange by the seller. And as courts weigh these issues, the California legislature has weighed inas well: the state recently passed a law requiring that online storefronts inform customers, inplain language, when the digital good they are about to purchase is a licensed product subject tolegal limitations.
Senator Wyden acknowledges the issues involved are complex and will not be easy to address, but urges the FTC to provide some kind of rules that will protect U.S. consumers.
Transparency is crucial to ensure that consumers know what they are buying and are not confused about the nature of the transaction. As the FTC has noted, “Companies are always obliged to ensure that customers understand what they’re getting for their money.”8 I therefore request that the FTC issue guidance for sellers of digital goods to ensure they are providing clear information about what they are selling and what ownership interests a purchaser will have. This should include, for example, how long a license lasts and under what circumstances it may expire or be revoked, as well as whether consumers have the right to transfer or re-sell the content. This information should be presented before and at the point of sale in a way that is clear and understandable for consumers, so that they can use all the information at hand to determine if they want to purchase or rent the product at the offered price. To put it simply, prior to agreeing to any transaction, consumers should understand what they are paying for and what is guaranteed after the sale.
The shift from physical to digital goods presents some complex legal questions. One thing is clear, however: consumers deserve transparency about their ownership rights in digital goods.Guidance from the FTC on this issue will help ensure that digital goods sellers are aware of best practices and that American consumers can make informed buying decisions
The issue Senator Wyden is addressing is a growing issue, with court actions and various petitions all trying to put pressure on companies to honor digital purchases. A clear ruling from the FTC could go a long way toward addressing the problem.
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