PREFILED NOV 17 2025
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REFERENCE TITLE: digital goods; seller's requirements; enforcement |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2010 |
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Introduced by Representative Kupper
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AN ACT
amending title 44, chapter 10, article 5, arizona revised statutes, by adding section 44-1584; relating to advertising.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 44-1584, to read:
44-1584. Digital goods; advertising disclosures; unlawful practice; civil penalty; private right of action; definitions
A. It is unlawful for a seller of a digital good to offer for sale or advertise a digital good to a purchaser using the terms "buy" or "Purchase" or any other term that a reasonable person would understand to confer an unrestricted ownership interest in that digital good, or alongside an option for a time-limited rental, unless either of the following occurs:
1. At the time of each transaction, The seller:
(a) Provides to the purchaser:
(i) a complete list of restrictions and conditions for the license, including any circumstances under which access may be revoked.
(ii) notice that the license may be for a product that was altered from the product's ORIGINAL version.
(b) Receives an affirmative acknowledgement from the purchaser that the purchaser received all of the following from the seller:
(i) A license to access the digital good.
(ii) A notice that the seller may revoke access to the license if the purchaser violates any of the license restrictions or conditions.
(iii) A notice that the seller may unilaterally revoke access to the digital good if the seller no longer holds the right to the digital good or the service is shut down or discontinued or on the OCCURRENCE of any of the circumstances that were specified by the seller.
2. Before executing each transaction, the seller provides to the purchaser a clear and conspicuous statement that both:
(a) States in plain language that buying or purchasing a digital good is a license.
(b) Includes a hyperlink, QR code or other similar method to access the terms and conditions of the license, including the full details about the license and license revocation policies.
B. Any affirmative acknowledgment from the purchaser or clear and conspicuous statement prescribed by subsection A of this section must be distinct and separate from any other terms and conditions of the transaction that the purchaser acknowledges or agrees to.
C. After the transaction is completed, if the terms of the license change in a way that materially affects the purchaser's access, the seller shall provide notice to the purchaser and offer a prorated refund or alternative access option.
D. This section does not:
1. Require a person to download a digital good.
2. Prohibit a person from storing a digital good on a server for access through the internet.
3. Apply to any of the following:
(a) A subscription-based service that advertises or offers for sale access to any digital good solely for the duration of the subscription.
(b) A DIGITAL good that is advertised or offered to a person without monetary consideration.
(c) A digital good that is advertised or offered to a person and that the seller cannot revoke access to after the transaction, including making the digital good available at the time of purchase for permanent offline download to an external storage source to be used without a connection to the internet.
(d) A blockchain-based asset, including a non-fungible token, where ownership is decentralized and not subject to unilateral revocation by the seller.
(e) An educational or noncommercial digital good that is provided by a public library, educational institution or open-source platform.
E. A violation of this section is an unlawful practice pursuant to section 44-1522. The attorney general may investigate and take appropriate action as provided by chapter 10, article 7 of this title.
F. In addition to any other remedies, a person who violates this section is subject to a civil penalty of not more than $2,500 for each violation.
G. A purchaser who is aggrieved by a violation of this section may bring a civil action to recover actual damages, reasonable attorney fees and court costs. If the violation is wilful or knowing, the court may award treble damages.
H. For the purposes of this section:
1. "Blockchain-based asset" means a digital good whose ownership and access are verified through a decentralized ledger technology, including Blockchain technology as defined in section 44-7061, and that cannot be unilaterally revoked or altered by the seller after the transaction.
2. "clear and conspicuous":
(a) means in a manner that clearly calls attention to the language.
(b) Includes:
(i) using larger type than the surrounding text.
(ii) using contrasting type, font or color to the surrounding text of the same size.
(iii) Setting off the surrounding text by using symbols or other marks.
3. "Digital application or game" means an application or game that a person accesses and manipulates using a specialized electronic gaming device, computer, mobile device, tablet or other device with a display screen, including any add-ons or additional content for that application or game.
4. "Digital audiovisual work":
(a) Means a series of related images and accompanying sounds that when shown in succession impart an impression of motion.
(b) Includes any of the following:
(i) Motion pictures.
(ii) Musicals.
(iii) Videos.
(iv) News and entertainment programs.
(v) Live events.
5. "Digital audio work" Means a work that results from the fixation of a series of musical, spoken or other sounds that are transferred electronically, including any of the following:
(a) Prerecorded or live songs.
(b) Music.
(c) Oral readings of books or other written materials.
(d) Speeches.
(e) Ringtones or other sound recordings.
6. "Digital book" Means a work that is generally recognized in the ordinary and usual sense as a book of fiction or nonfiction and that is transferred electronically.
7. "Digital code":
(a) Means a code that provides the person who holds the code a right to obtain an additional digital good or a digital audiovisual work, digital audio work or digital book that may be obtained by any means, including tangible forms and electronic mail, regardless of whether the code is designated as song code, video code or book code.
(b) Includes any of the following:
(i) Codes that are used to access or obtain any specified digital goods or any additional digital goods that have been previously purchased.
(ii) Promotion cards or codes that are purchased by a retailer or other business entity for use by the retailer's or entity's customers.
8. "Digital good":
(a) Includes any of the following, whether electronically or digitally delivered or accessed:
(i) a digital audiovisual work.
(ii) A digital audio work.
(iii) A digital book.
(iv) A digital code.
(v) A digital application or game.
(b) Does not include any of the following:
(i) A cable television service.
(ii) A satellite relay television service.
(iii) Any other distribution of television, video or radio service.
Sec. 2. Short title
This act may be cited as the "Making Internet Non-ownership Understandable for Streaming Act or the MINUS ACT".