Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., pressed the Federal Trade Commission (FTC) to stop companies from misleadingly offering people the ability to “buy” online content, including TV, e-books, movies, music, and video games, when the reality is consumers do not have total control over their purchases. Far too often, consumers “buy” digital goods only to learn they cannot own, sell, or transfer the items, and may even have them deleted with no recourse— a legal loophole that many companies such as Amazon, Apple, and Sony only explain in the finely printed terms of service.
In the letter to FTC Chair Andrew Ferguson, Wyden said, “This information should be presented before and at the point of sale in a way that is clear and understandable for consumers, so that they can use all the information at hand to determine if they want to purchase or rent the product at the offered price. To put it simply, prior to agreeing to any transaction, consumers should understand what they are paying for and what is guaranteed after the sale.”
Over the past several years, many companies have shifted from producing and selling physical copies of books, music, TV, video games, and other content to online versions. As people increasingly buy their products online, this shift has raised concerns about companies failing to be transparent about what consumers are actually buying. Online purchasers are left vulnerable and susceptible to getting less than what they paid for.
Companies may be able to change or remove people’s online content at any time. In 2023, Sony announced users could no longer watch previously purchased Discovery content, including shows such as Cake Boss, MythBusters, and Deadliest Catch, until the companies reached a deal. Amazon also recently announced that consumers would no longer be able to download or back up their e-books, making it more difficult for them to access and keep their purchases.
Wyden concluded, “The shift from physical to digital goods presents some complex legal questions. One thing is clear, however: consumers deserve transparency about their ownership rights in digital goods. Guidance from the FTC on this issue will help ensure that digital goods sellers are aware of best practices and that American consumers can make informed buying decisions.”
Wyden is a longtime champion in the Senate of protecting consumers while holding companies accountable in today’s digital environment. In 2019, Wyden introduced a bill to hold corporations accountable for abusing their use of Americans’ information. Also, in 2019, Wyden and his colleagues introduced a bill requiring companies to target flawed algorithms that have resulted in biased or discriminatory decisions harming Americans. In 2023, Wyden and then-Senate Finance Committee Ranking Member Mike Crapo, R-Idaho, wrote a letter to stakeholders requesting their policy clarifications on taxing digital assets.
The text of the letter is here.