Class Actions Under California’s Digital Goods Disclosure Law Reach Video Games: What to Know (via Passle)

January 23, 2026 - 18:22

A California law designed to bring transparency to digital purchases is now at the center of a growing legal battle within the video game industry. The statute, known as AB 2426, mandates that sellers of digital goods like software, music, and movies clearly disclose the existence and general functionality of any pre-installed "digital application" before a consumer completes a transaction.

Enacted at the start of last year, the law is now being leveraged in a series of proposed class-action lawsuits against major video game publishers and developers. The litigation argues that companies failed to properly inform players about the presence of anti-cheat or security software, such as the widely used Kernel-level drivers, bundled with their games. These programs often run with deep system access, a fact plaintiffs claim was not appropriately revealed at the point of sale.

Legal experts suggest the core dispute will hinge on whether the required disclosures were made sufficiently clear to consumers prior to purchase. The lawsuits seek statutory damages on behalf of all California residents who bought the affected games, potentially amounting to significant sums. This legal offensive signals a new front of consumer protection scrutiny for the gaming sector, compelling companies to meticulously review how they communicate technical details about their products' underlying software. The outcomes could establish important precedents for disclosure standards across the entire digital marketplace.