1. Issues arising from termination of players’ access to their digital games

In the past, computer and console games were predominantly sold in the form of physical media, such as cartridges or discs. Players would install games from the cartridges or discs onto their computer or console, or allow their devices to directly read the media. Players could then enjoy perpetual offline gameplay. However, with advancements in digital and online technology, nowadays an increasing number of games are exclusively sold through online platforms (such as Steam and Epic Games Store). To play a game that has been downloaded and installed, players may also have to connect to the internet and access the game platform or servers operated by the game company.

This model of online sales and online gameplay enhances the convenience of selling games and maintaining servers. It allows players to purchase their desired games more easily and play the latest patched version of a game. However, if a game company ceases to maintain a game, it could diminish the player experience. What’s more, if a company shuts down the servers or removes a game from a gaming platform entirely, players may no longer be able to play the game, which would affect their rights. For instance, at the end of 2023, Electronic Arts, an American game company, shut down the servers for seven games, including Battlefield 1943.[1] In 2024, titles such as Concord[2] and Ubisoft’s The Crew[3] were similarly delisted from platforms and had their servers shut down. In such scenarios, the game companies may face consumer disputes with the affected players due to their inability to continue playing the games they purchased.

2. California’s new law on digital goods sales

To address the potential disputes mentioned earlier, California passed a new law, AB 2426, in September 2024, adding regulations for the sale of “digital goods” to the state’s Business and Professions Code.[4] Under the new law, if digital goods like games, digital media, or e-books are advertised or sold using terms such as “buy” or “purchase”—suggesting to a reasonable person that they are acquiring full ownership—or if these goods are presented alongside time-limited rental options, the seller must clearly inform consumers that “buying” does not guarantee permanent ownership. Specifically for games sold digitally, as a result of the new law, sellers cannot lead players to believe they will own the digital download outright and can play it indefinitely. Instead, sellers must make it clear to consumers that their payment grants them a license to use the downloaded game, which may be revoked in the future. The new law emphasizes adequate disclosure of information to ensure that consumers fully understand their rights and obligations before making a purchase, with the aim of preventing disputes when players are unable to play a game anymore, either because the game was removed or servers were shut down.

To be specific, California’s new AB 2426 law requires that, for a seller of a digital good to advertise or offer for sale a digital good to a purchaser with terms such as “buy” or “purchase,” or alongside an option for a time-limited rental, one of the following must occur:

(A) The seller receives at the time of each transaction an affirmative acknowledgment from the purchaser indicating all of the following:

(i) That the purchaser is receiving a license to access the digital good.

(ii) A complete list of restrictions and conditions of the license.

(iii) That access to the digital good may be unilaterally revoked by the seller if they no longer hold a right to the digital good, if applicable.

(B) The seller provides to the consumer before executing each transaction a clear and conspicuous statement that does both of the following:

(i) States in plain language that “buying” or “purchasing” the digital good is a license.

(ii) Includes a hyperlink, QR code, or similar method to access the terms and conditions that provide full details on the license.

3. Regulations in Taiwan regarding terminating consumers’ access to their digital games

Currently, Taiwan does not have any specific laws governing the sale of online games and termination of online game services. However, under Taiwan’s Consumer Protection Act (“CPA”) and the regulations outlined in the Mandatory and Prohibited Provisions of Standardized Contracts for Online Game Services issued by the regulatory authority for the gaming industry, game operators are permitted to unilaterally terminate game services. Nevertheless, they bear certain obligations to announce or notify players of such termination, which are part of the mandatory provisions in standardized contracts with the players. Specifically, such mandatory provisions stipulate that:

(1) If the business operator terminates the contract due to the discontinuation of the game services, the operator must, at least 30 days prior to the termination, announce the termination on the homepage of the operator’s official website, game login page, or purchase page. If at the time when the consumer registers an account, the consumer has provided contact information, the operator must also notify the consumer of such termination via that contact information.

(2) If the operator fails to announce or notify the consumer of such termination within the period described above, they must refund any unused purchased game time or in-game currency to consumers without deducting necessary costs. In addition, they must offer consumers other reasonable compensation.[5]

Under the CPA, even if the mandatory provisions are not expressly included in the standardized contract between the online game operator and the player, these provisions still automatically become part of the contract and are binding on the game operators. If an operator removes a game from a platform or shuts down the game servers, thereby preventing players from continuing to play, this may be regarded as “terminating the contract due to discontinuation of the game services.” Consequently, operators are obligated to provide at least 30 days’ prior notice or announcement to consumers.

However, under these mandatory provisions, game operators are only required to refund game time or in-game currency if they fail to provide the 30-day announcement/notice. If players believed that they were paying to “purchase” the game before downloading and playing, they might reasonably expect that they “bought” the game and therefore “own” it, enabling them to play it permanently (like purchasing traditional physical discs or cartridges). If the operator later removes the game from the platform, shuts down the game servers, or otherwise prevents those that purchased the game from continuing to play, players might demand a refund—at least in part—for the game, because it does not meet their expectation of being able to be played permanently.

Therefore, even if the operator complies with the CPA’s standardized contract requirements, incorporates the announcement and notification obligations regarding service termination into their contract with players, and fulfills these obligations, players may still, based on their perception of having “purchased” and “owned” the game, request refunds, potentially leading to consumer disputes.

To avoid such disputes, we recommend that game operators selling or advertising their games in Taiwan ensure that players understand they are only obtaining a license to play the game (rather than permanently owning the game). Players should also be made aware that game operators retain the right to unilaterally revoke players’ access to the game software in the future due to business reasons, loss of rights, or any other reasons. Additionally, operators should ensure that players understand and agree to the detailed terms of the license (including the possibility of future revocation of access and the related refund policies, if any). By fully disclosing relevant information, players can understand their rights and obligations before purchasing, thereby mitigating the risk of potential consumer disputes if the operator discontinues the game service in the future.

This is a translation of the original article in Chinese, which can be found here. Translation by George Bobyk and Andrew Lei.

For more information on laws and regulations related to gaming, please contact Ling-ying Hsu at lhsu@winklerpartners.com.

Written on 10 January 2025 by Ling-ying Hsu and Andrew Lei.

Translated on 10 March 2025 by George Bobyk and Andrew Lei.

[1] See Dalton Cooper (Dec. 1, 2023), “7 EA Games Are Getting Shut Down on December”, Game Rant (https://gamerant.com/ea-games-shutting-down-soon-list-servers/).

[2] See Zachary Cimaglio (Sept. 10, 2024), “Concord Has Been Removed from PlayStation Accounts”, Game Rant (https://gamerant.com/concord-removed-from-playstation-libraries/).

[3] See Dalton Cooper (Dec. 14, 2023), “Ubisoft Game Delisted After 9 Years, Will Soon Become Unplayable”, Game Rant (https://gamerant.com/the-crew-game-delisted-steam-ubisoft/).

[4] See “AB-2426 Consumer protection: false advertising: digital goods” (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2426).

[5] See point no. 19 of the mandatory provisions of the Mandatory and Prohibited Provisions of Standardized Contracts for Online Game Services.