California Digital Storefronts Must Now Explain License Terms of Digital Products

A new California law, AB 2426, signed by Governor Gavin Newsome on September 24, 2024, requires any company offering online-only digital goods to California consumers using “buy,” “purchase” or similar terms to clarify whether or not the goods are a transfer of ownership or are instead a license to the purchaser.

In essence, the law bans digital storefronts from using terms like “buy” or “purchase” if there is no transfer of ownership unless they also inform customers that they are not getting unrestricted access to the digital items they are paying for. Online sites using “buy,” purchase” or similar terms when offering digital goods will have to prominently state that customers are getting a license that can be revoked and provide the terms of the license. Companies that do not could be fined for false advertising or potentially sued by consumers.

Read the full story on the Duane Morris LLP website.

California’s bid to ban selling anti-agers to teens fell through, but set a precedent

It is a truth universally acknowledged that a person over 40 must be in want of a face cream. Or a serum. Or anything, so long as it promises to reduce the appearance of ageing.

I should know. I’ve tried most of them. In addition to my day job as a lawyer, dealing with litigation risk and regulatory issues affecting businesses in the cosmetics and personal care industries, I am a woman who has just turned 40.

My social media is a 24/7 loop of miracle products, promising a better version of me. One who is, invariably, 20 years younger.

But as consumers 30 years younger report spending more on cosmetics, skin care and fragrance in 2023, dermatologists are increasingly reporting younger teenagers with skin conditions as a result of anti-ageing product use.

These conditions include contact dermatitis, dryness and rashes, as well as increased sensitivity to sunburn and sun damage.

Dermatologists are also reporting teenagers seeking unrealistic ‘glass skin’, or ideas about skin care based on social media misinformation.

To read the full text of this article by Duane Morris attorney Kelly Bonner, please visit the Cosmetics Business website (subscription required).

News For Retailers: New California Law Requires Gender-Neutral Displays for Children’s Items

By Anjuli M. Cargain

California Governor Gavin Newsom signed Assembly Bill (“AB”) 1084, requiring retail department stores in California to maintain a gender-neutral section to display toys and certain childcare items beginning January 1, 2024. The new law applies to retail department stores with 500 or more employees within California that are physically located in California; it expressly excludes out-of-state stores.   Continue reading “News For Retailers: New California Law Requires Gender-Neutral Displays for Children’s Items”

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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