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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2010: digital goods; seller's requirements; enforcement
Sponsor: Representative Kupper, LD 25
Committee on Commerce
Overview
Provides advertising disclosure requirements for a seller of a digital good.
History
A person is guilty of a class 3 misdemeanor for engaging in fraudulent advertising practices, which include: 1) knowingly and with the intent to sell to the public real or personal property or services, or to induce the public to acquire an interest therein, makes and publishes an advertisement, either printed or by public outcry or proclamation, or otherwise, containing any false, fraudulent, deceptive or misleading representations in respect to such property or services, or the manner of its sale or distribution; or 2) publishes, circulates or disseminates any statement or assertion of fact concerning real estate which is known by him to be untrue, and which is made or disseminated with the intention of misleading (A.R.S. § 44-1481).
Provisions
Seller's Requirements
1. Prohibits a seller of a digital good from using a term, such as buy or purchase, in the sale or advertisement that would lead a person to believe grants them an unrestricted ownership interest or an option for a time-limited rental, unless:
a. at the time of each transaction the seller provides specified information to, and receives acknowledgement from, the purchaser relating to the license of the digital good; or
b. before executing each transaction, the seller provides the purchaser with a clear and conspicuous statement that the purchase of the digital good is a license and a digital manner of accessing the terms and conditions for the license. (Sec. 1)
2. Requires any affirmative acknowledgement from the purchaser of notices made at or before the time of transaction by the seller to be distinct and separate from any other terms and conditions of the transaction. (Sec. 1)
3. Directs the seller to provide notice to the purchaser and offer a prorated refund or alternative access option if the terms of the license change in a way that impacts the purchaser's access. (Sec. 1)
Exemptions
4. Stipulates the seller's requirements do not:
a. require the person download a digital good;
b. prevent a person from storing a digital good on a server for access through the internet; and
c. apply to:
i. certain subscription-based services;
ii. digital goods that are offered without monetary consideration or cannot be revoked by the seller after the transaction;
iii. blockchain-based assets where ownership is decentralized and not subject to unilateral revocation; and
iv. educational or noncommercial digital goods provided by a public library, educational institution or an open-source platform. (Sec. 1)
Penalties
5. Declares a violation of the seller's requirements is an unlawful practice under the Consumer Fraud statutes and subject to investigation and appropriate action by the Attorney General. (Sec. 1)
6. Subjects a person who violates the seller's requirements, in addition to any other remedies, to a civil penalty of up to $2,500 per violation. (Sec. 1)
7. Authorizes a purchaser to bring a civil action to recover actual damages, attorney fees and court costs. (Sec. 1)
Miscellaneous
8. Defines pertinent terms. (Sec. 1)
9. Cites the act as the Making Internet Non-ownership Understandable for Streaming Act or the MINUS ACT. (Sec. 2)
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Initials PB/AI HB 2010
1/21/2026 Page 0 Commerce
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