digital goods; seller's requirements; enforcement, the official text

PREFILED    NOV 17 2025

REFERENCE TITLE: digital goods; seller's requirements; enforcement

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2010

Introduced by

Representative
Kupper

AN
ACT

amending title 44, chapter 10, article 5,
arizona revised statutes, by adding section 44-1584; relating to advertising.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 10, article 5,
Arizona Revised Statutes, is amended by adding section 44-1584, to read:

START_STATUTE44-1584. Digital goods; advertising disclosures; unlawful practice; civil
penalty; private right of action; definitions

A. It is unlawful for a seller of a
digital good to offer for sale or advertise a digital good to a purchaser using
the terms "buy" or "Purchase" or any other term that a
reasonable person would understand to confer an unrestricted ownership interest
in that digital good, or alongside an option for a time-limited rental,
unless either of the following occurs:

1. At the time of each transaction,
The seller:

(a) Provides to
the purchaser:

(i) a complete
list of restrictions and conditions for the license, including any
circumstances under which access may be revoked.

(ii) notice
that the license may be for a product that was altered from the product's
ORIGINAL version.

(b) Receives an
affirmative acknowledgement from the purchaser that the purchaser received all
of the following from the seller:

(i) A license
to access the digital good.

(ii) A notice
that the seller may revoke access to the license if the purchaser violates any
of the license restrictions or conditions.

(iii) A notice
that the seller may unilaterally revoke access to the digital good if the
seller no longer holds the right to the digital good or the service is shut
down or discontinued or on the OCCURRENCE of any of the circumstances that were
specified by the seller.

2. Before executing each transaction,
the seller provides to the purchaser a clear and conspicuous statement that
both:

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

(b) Includes a
hyperlink, QR code or other similar method to access the terms and conditions
of the license, including the full details about the license and license
revocation policies.

B. Any affirmative acknowledgment
from the purchaser or clear and conspicuous statement prescribed by subsection
A of this section must be distinct and separate from any other terms and
conditions of the transaction that the purchaser acknowledges or agrees to.

C. After the transaction is
completed, if the terms of the license change in a way that materially affects
the purchaser's access, the seller shall provide notice to the purchaser and
offer a prorated refund or alternative access option.

D. This section does not:

1. Require a person to download a
digital good.

2. Prohibit a person from storing a
digital good on a server for access through the internet.

3. Apply
to any of the following:

(a) A subscription-based service that advertises or
offers for sale access to any digital good solely for the duration of the
subscription.

(b) A DIGITAL
good that is advertised or offered to a person without monetary consideration.

(c) A digital
good that is advertised or offered to a person and that the seller cannot
revoke access to after the transaction, including making the digital good
available at the time of purchase for permanent offline download to an external
storage source to be used without a connection to the internet.

(d) A
blockchain-based asset, including a non-fungible token, where
ownership is decentralized and not subject to unilateral revocation by the
seller.

(e) An
educational or noncommercial digital good that is provided by a public library,
educational institution or open-source platform.

E. A violation of this section is an
unlawful practice pursuant to section 44-1522. The attorney
general may investigate and take appropriate action as provided by chapter 10,
article 7 of this title.

F. In addition to any other remedies,
a person who violates this section is subject to a civil penalty of not more
than $2,500 for each violation.

G. A purchaser who is aggrieved by a
violation of this section may bring a civil action to recover actual damages,
reasonable attorney fees and court costs.  If the violation is wilful or
knowing, the court may award treble damages.

H. For the purposes of this section:

1. "Blockchain-based
asset" means a digital good whose ownership and access are verified
through a decentralized ledger technology, including Blockchain technology as
defined in section 44-7061, and that cannot be unilaterally revoked or
altered by the seller after the transaction.

2. "clear and conspicuous":

(a) means in a
manner that clearly calls attention to the language.

(b) Includes:

(i) using
larger type than the surrounding text.

(ii) using
contrasting type, font or color to the surrounding text of the same size.

(iii) Setting
off the surrounding text by using symbols or other marks.

3. "Digital application or game" means an
application or game that a person accesses and manipulates using a specialized
electronic gaming device, computer, mobile device, tablet or other device with
a display screen, including any add-ons or additional content for that
application or game.

4. "Digital audiovisual
work":

(a) Means a
series of related images and accompanying sounds that when shown in succession
impart an impression of motion.

(b) Includes
any of the following:

(i) Motion
pictures.

(ii) Musicals.

(iii) Videos.

(iv) News and
entertainment programs.

(v) Live
events.

5. "Digital audio work"
Means a work that results from the fixation of a series of musical, spoken or
other sounds that are transferred electronically, including any of the
following:

(a) Prerecorded
or live songs.

(b) Music.

(c) Oral
readings of books or other written materials.

(d) Speeches.

(e) Ringtones
or other sound recordings.

6. "Digital book" Means a
work that is generally recognized in the ordinary and usual sense as a book of
fiction or nonfiction and that is transferred electronically.

7. "Digital code":

(a) Means a
code that provides the person who holds the code a right to obtain an
additional digital good or a digital audiovisual work, digital audio work or
digital book that may be obtained by any means, including tangible forms and
electronic mail, regardless of whether the code is designated as song code,
video code or book code.

(b) Includes
any of the following:

(i) Codes that
are used to access or obtain any specified digital goods or any additional
digital goods that have been previously purchased.

(ii) Promotion
cards or codes that are purchased by a retailer or other business entity for
use by the retailer's or entity's customers.

8. "Digital good":

(a) Includes
any of the following, whether electronically or digitally delivered or
accessed:

(i) a digital
audiovisual work.

(ii) A digital
audio work.

(iii) A digital
book.

(iv) A digital
code.

(v) A digital
application or game.

(b) Does not include any of the following:

(i) A cable television service.

(ii) A
satellite relay television service.

(iii) Any other
distribution of television, video or radio service.

Sec. 2. Short title

This act may be cited as the
"Making Internet Non-ownership Understandable for Streaming Act or the
MINUS ACT".