NOTICE: If you “bought” or “purchased” digital goods from Books-a-Million any time after January 1, 2025, contact Emery | Reddy, PC for a Free Case Review.
Books-a-Million, a major retailer of books and digital content, could face scrutiny for false advertising in digital goods. As more consumers purchase e-books, audiobooks, and other digital media, transparency in advertising is critical. California’s Assembly Bill 2426 (AB 2426), effective January 1, 2025, addresses misleading practices in digital sales, practices that may apply to companies like Books-a-Million.
What Is False Advertising in Digital Goods?
False advertising occurs when businesses mislead consumers about what they are buying. In the digital marketplace, this often involves using terms like “buy” or “purchase” when customers are actually receiving a revocable license, not true ownership. This distinction matters because:
- Consumers expect permanent access when they “buy” something.
- Licensing agreements allow sellers to revoke access if rights change.
If Books-a-Million advertises digital books or audiobooks as purchases without clear disclosure, that could constitute false advertising under AB 2426.
AB 2426: Key Provisions
California’s AB 2426 strengthens consumer protection by requiring:
- Affirmative Acknowledgment
Sellers must obtain clear confirmation that:- The transaction is for a license, not ownership.
- Access may be revoked if distribution rights change.
- All restrictions are disclosed.
- Clear and Conspicuous Disclosure
Sellers must provide:- A plain-language statement that the buyer is receiving a license.
- A link or QR code to full terms and conditions.
Failure to comply can result in civil penalties up to $2,500 per violation and exposure to lawsuits under California’s Unfair Competition Law.
Why This Matters for Books-a-Million Customers
Imagine purchasing an e-book from Books-a-Million, only to lose access because the publisher revoked rights. Without proper disclosure, this feels like a broken promise, and under AB 2426, it may be illegal.
The law ensures:
- Transparency: No misleading “buy” language without clarification.
- Consumer empowerment: Buyers know what they’re paying for.
- Accountability: Businesses face penalties for deceptive practices.
What Counts as a Digital Good?
AB 2426 defines digital goods broadly to include:
- Digital applications or games
- Digital audio works including, but limited to music, podcasts, speeches, and ringtones
- Digital audiovisual works including movies, videos, new and entertainment programs, and live events
- Digital books
- Digital codes including codes used to access or obtain any specified digital goods, or any additional digital goods that have been previously purchased, and promotion cards or codes that are purchased by a retailer or other business for use by the retailer’s customers
However, the law excludes:
- Subscription-based services
- Free digital goods
- Digital goods that are permanently downloaded and stored offline, where access cannot be revoked
Books-a-Million’s e-books and audiobooks clearly fall under this definition.
Implications for Businesses
Companies like Books-a-Million must:
- Review marketing language
- Update checkout disclosures
- Train staff on compliance
Ignoring these steps risks lawsuits, fines, and reputational damage.
Consumer Rights and Next Steps
If you purchased digital goods from Books-a-Million and lost access without warning:
- Save your receipts and communications.
- Document when and how access was revoked.
- Contact Emery | Reddy, PC for a Free Case Review. No fee unless we recover for you.
At Emery | Reddy, we help consumers fight deceptive practices. Call today for a Free Case Review. Our team can evaluate your case and pursue compensation if warranted.
