Key Points
Sony filed August 21 motion defending PlayStation Store disclosures against June class action lawsuit.
Four gamers allege Sony violated California AB 2426 by using "Buy Now" buttons without clear ownership warnings.
AB 2426 requires sellers to disclose digital purchases grant licenses, not ownership, effective January 1, 2025.
Sony separately paying $7.85 million CAD to settle unrelated monopoly lawsuit over discontinued game vouchers.
Sony Interactive Entertainment filed a motion on August 21 in California’s Northern District Court arguing its PlayStation Store disclosures are clear enough that customers cannot be misled into believing they own digital games. The company faces a proposed class action lawsuit filed in June by four gamers who allege Sony violated California’s AB 2426 by using “Buy Now” and “Confirm Purchase” buttons without adequate warnings that purchases grant only revocable licenses. The law, effective January 1, 2025, requires sellers of digital goods to explicitly state that consumers receive licenses, not ownership.
What the lawsuit alleges
Four PlayStation owners filed suit in June claiming Sony’s PlayStation Store misleads customers about digital game purchases. The plaintiffs, Andrew Garcia, Edward Heycock, Jason Mendoza, and Josh Salinas, bought titles including NBA 2K25, Resident Evil Requiem, and Madden NFL 26 after the January 1, 2025 effective date of AB 2426. They allege Sony violated California’s False Advertising Law and Consumer Legal Remedies Act by failing to make clear in plain language that “buying” or “purchasing” a digital game grants only a license, not ownership.
Sony’s defense in court
Sony argues in its August 21 filing that reasonable consumers would not be misled because the PlayStation Terms of Service and Software Product Licensing Agreement are linked at checkout. Both documents state “you can use a product in the ways described in the license, but do not own the product” and “The Software is licensed to you, not sold.” Sony contends that no reasonable person could believe they own a digital game, since multiple players can purchase the same title simultaneously.
California’s digital goods law and industry response
California’s AB 2426, signed into law in 2024 by Governor Gavin Newsom, prohibits sellers from using terms like “buy” or “purchase” for licensed digital goods without proper disclosures during checkout. Steam has complied by adding warnings on its shopping cart page. GameStop also faces a January 2026 lawsuit from customer Jake Weber for allegedly violating the same law. Sony is also invoking an arbitration clause from its terms of service to push the case out of court into individual arbitration.
Separate settlement over digital game vouchers
Sony is also paying out $7.85 million CAD in PlayStation Store credit to settle an unrelated class action lawsuit, Caccuri v. Sony Interactive Entertainment. That case alleged Sony unlawfully monopolized the digital games market by discontinuing game-specific vouchers that let customers buy from other online retailers. The settlement was initially approved in 2024 but rejected twice before preliminary approval in 2026. A final approval hearing is scheduled for October 15, 2026.
Final Thoughts
Sony’s August 21 court filing argues its existing disclosures comply with California law, but the case hinges on whether fine print buried in lengthy terms of service meets the “clear and conspicuous” standard AB 2426 requires. The outcome could reshape how all digital storefronts label game purchases.
FAQs
AB 2426, effective January 1, 2025, requires sellers to clearly disclose in plain language that consumers buying digital goods like games receive revocable licenses, not ownership. It prohibits using terms like “buy” or “purchase” without proper warnings.
Andrew Garcia, Edward Heycock, Jason Mendoza, and Josh Salinas filed the June 2026 lawsuit in California’s Northern District Court alleging Sony misled them about digital game purchases.
The plaintiffs purchased NBA 2K25 ($20.99), NBA 2K26 ($65.99), Madden NFL 26 ($69.99), Resident Evil Requiem, and Five Nights at Freddy’s 4 between March and August 2025.
Sony is invoking an arbitration clause in its terms of service to push the lawsuit out of court into individual arbitration, which could prevent the case from reaching trial as a class action.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Huzaifa Zahoor
Co FounderHuzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.
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