EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0208*
HOUSE BILL 208
I3, S1 5lr1358
(PRE–FILED)
By: Delegate Fraser–Hidalgo
Requested: October 24, 2024
Introduced and read first time: January 8, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Consumer Protection – False Advertising – Digital Goods 2
FOR the purpose of prohibiting a person from advertising or offering for sale a digital good 3
using certain terminology or alongside an option for a time–limited rental unless 4
certain acknowledgments are received from the purchaser and certain statements 5
are provided by the seller; establishing that a person is guilty of a misdemeanor and 6
subject to certain penalties for a violation of this Act; and generally relating to the 7
advertising and offering of digital goods for sale. 8
BY repealing and reenacting, with amendments, 9
Article – Commercial Law 10
Section 14–2901 11
Annotated Code of Maryland 12
(2013 Replacement Volume and 2024 Supplement) 13
BY adding to 14
Article – Commercial Law 15
Section 14–2904 16
Annotated Code of Maryland 17
(2013 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Commercial Law 21
14–2901. 22
(a) In this subtitle the following words have the meanings indicated. 23
2 HOUSE BILL 208
(b) “Advertise” means: 1
(1) To publish, circulate, disseminate, or place before the public in any way 2
or through any medium for the purpose of selling merchandise; and 3
(2) Advertising by: 4
(i) Exterior or interior signs, including neon or other electrical signs; 5
(ii) Radio, telephone, or television; and 6
(iii) Newspaper, magazine, book, notice, or any other method or 7
material. 8
(C) “CLEAR AND CONSPICUOUS ” MEANS IN A MANNER TH AT CLEARLY 9
CALLS ATTENTION TO T HE LANGUAGE , INCLUDING TEXT THAT IS: 10
(1) IN LARGER TYPE THAN THE SURROUNDING TEXT; 11
(2) IN A CONTRASTING TYPE , FONT, OR COLOR TO THE SURR OUNDING 12
TEXT; OR 13
(3) SET OFF FROM THE SURROUN DING TEXT BY SYMBOLS OR OTHER 14
MARKS. 15
(D) “DIGITAL APPLICATION O R GAME” MEANS ANY APPLICATIO N OR GAME 16
THAT A PERSON ACCESS ES AND MANIPULATES U SING A SPECIALIZED E LECTRONIC 17
GAMING DEVICE , COMPUTER , MOBILE DEVICE , TABLET, OR OTHER DEVICE WITH A 18
DISPLAY SCREEN , INCLUDING ANY ADD –ONS OR ADDITIONAL CO NTENT FOR TH E 19
APPLICATION OR GA ME. 20
(E) “DIGITAL AUDIO WORK ” MEANS A WORK THAT RE SULTS FROM THE 21
FIXATION OF A SERIES OF MUSICAL, SPOKEN, OR OTHER SOUNDS THAT ARE 22
TRANSFERRED ELECTRON ICALLY, INCLUDING: 23
(1) PRERECORDED OR LIVE SONGS; 24
(2) MUSIC; 25
(3) READINGS OF BOOKS OR OTHER WRITTEN MATERIALS ; 26
(4) SPEECHES; 27
(5) RINGTONES; OR 28 HOUSE BILL 208 3
(6) OTHER SOUND RECORDING S. 1
(F) (1) “DIGITAL AUDIOVISUAL W ORK” MEANS A SERIES OF RE LATED 2
IMAGES THAT, WHEN SHOWN IN SUCCES SION, IMPART AN IMPRESSION OF MOTION, 3
TOGETHER WITH ACCOMP ANYING SOUNDS . 4
(2) “DIGITAL AUDIOVISUAL W ORK” INCLUDES MOTION PICT URES, 5
MUSICALS, VIDEOS, NEWS AND ENTERTAINME NT PROGRAMS , AND LIVE EVENTS. 6
(G) “DIGITAL BOOK” MEANS A WORK THAT IS GENERALLY RECOGNIZED AS 7
A BOOK AND IS TRANSFERRED ELECT RONICALLY, INCLUDING A WORK OF FICTION 8
OR NONFICTION . 9
(H) (1) “DIGITAL CODE” MEANS A CODE THAT GRANTS THE PERSON 10
HOLDING THE CODE A RIGHT TO OBTAIN AN ADDITIONAL DIGITAL GOOD THAT MAY 11
BE OBTAINED BY ANY MEAN S, INCLUDING TANGIBLE F ORMS AND ELECTRONIC MAIL, 12
REGARDLESS OF WHETHE R THE CODE IS DESIGN ATED AS A SONG CODE , VIDEO 13
CODE, OR BOOK CODE . 14
(2) “DIGITAL CODE” INCLUDES: 15
(I) A CODE USED TO ACCESS OR OBTAIN ANY SPECIF IED 16
DIGITAL GOODS , OR ANY ADDITIONAL DI GITAL GOODS THAT HAV E BEEN 17
PREVIOUSLY PURCHASED ; AND 18
(II) PROMOTION CARDS OR CODES THAT ARE PURCHASED BY A 19
RETAILER OR OTHER BU SINESS ENTITY FOR US E BY THE RETAIL ER’S OR ENTITY’S 20
CUSTOMERS . 21
(I) (1) “DIGITAL GOOD ” MEANS A DIGITAL APPLICATION OR GAME , 22
DIGITAL AUDIO WORK , DIGITAL AUDIOVISUAL WORK , DIGITAL BOOK, OR DIGITAL 23
CODE, WHETHER ELECTRONICAL LY OR DIGITALLY DELI VERED OR ACCESSED . 24
(2) “DIGITAL GOOD ” DOES NOT INCLUDE A CABLE TELE VISION 25
SERVICE, SATELLITE RELAY TELE VISION SERVICE, OR ANY OTHER DISTRIB UTION OF 26
TELEVISION, VIDEO, OR RADIO SERVICE . 27
[(c)] (J) “Person” includes an association, firm, partnership, corporation, or an 28
agent or employee of any of these entities. 29
[(d)] (K) “Property”, as used in § 14–2902(a) through (c) of this subtitle, includes: 30
(1) Merchandise; 31 4 HOUSE BILL 208
(2) Real estate; 1
(3) Securities; 2
(4) Employment; 3
(5) A loan made at interest; 4
(6) Any contract relating to real estate, securities, service, employment, or 5
the making of loans at interest; or 6
(7) Anything else of value. 7
14–2904. 8
(A) A PERSON MAY NOT ADVER TISE OR OFFER FOR SA LE A DIGITAL GOOD 9
USING TERMINOLOGY TH AT A REASONABLE PERS ON WOULD UNDERSTAND TO 10
CONFER AN UNRESTRICT ED OWNERSHIP INTERES T IN THE DIGITAL GOOD, UNLESS, 11
AT THE TIME OF SALE : 12
(1) THE SELLER RECEIVES A N AFFIRMATIVE ACKNOWLEDGMENT 13
FROM THE PURCHASER OF THE FOLLOWING : 14
(I) THAT THE PURCHASER IS RECE IVING A LICENSE TO A CCESS 15
A DIGITAL GOOD; 16
(II) A COMPLETE LIST OF RES TRICTIONS AND CONDIT IONS OF 17
THE LICENSE; AND 18
(III) THAT ACCESS TO THE DIGITAL GOOD MAY BE 19
UNILATERALLY REVOKED BY THE SELLER IF THE PURCHASER NO LONGER HOLD S A 20
RIGHT TO THE DIGITAL GOOD; AND 21
(2) THE SELLER PROVIDES TO T HE PURCHASER A CLEAR AND 22
CONSPICUOUS STATEMEN T THAT: 23
(I) STATES IN PLAIN LANGU AGE THAT THE PURCHASER IS 24
BUYING A LICENSE FOR THE DIGITAL GOOD ; AND 25
(II) INCLUDES A DIGITAL ME THOD TO ACCESS THE LICENSE 26
DETAILS, TERMS, AND CONDITIONS . 27
HOUSE BILL 208 5
(B) A PERSON MAY NOT ADVER TISE OR OFFER FOR SA LE A DIGITAL GOOD 1
ALONGSIDE AN OPTION FOR A TIME–LIMITED RENTAL , UNLESS, AT THE TIME OF 2
SALE: 3
(1) THE SELLER RECEIVES A N AFFIRMATIVE ACKNOW LEDGMENT 4
FROM THE PURCHASER OF THE FOLLOWING : 5
(I) THAT THE PURCHASER IS RECE IVING A LICENSE TO A CCESS 6
A DIGITAL GOOD; 7
(II) A COMPLETE LIST OF RES TRICTIONS AND CONDIT IONS OF 8
THE LICENSE; AND 9
(III) THAT ACCESS TO THE DIGITAL GOOD MAY BE 10
UNILATERALLY REVOKED BY THE SELLER IF THE PURCHASER NO LONGER HOLDS A 11
RIGHT TO THE DIGITAL GOOD; AND 12
(2) THE SELLER PROVIDES T O THE PURCHASER A CL EAR AND 13
CONSPICUOUS STATEMEN T THAT: 14
(I) STATES IN PLAIN LA NGUAGE THAT THE PURC HASER IS 15
BUYING A LICENSE FOR THE DIGITAL GOOD ; AND 16
(II) INCLUDES A DIGITAL ME THOD TO ACCESS THE L ICENSE 17
DETAILS, TERMS, AND CONDITIONS . 18
(C) THE AFFIRMATIVE ACKNO WLEDGMENTS REQUIRED UNDER 19
SUBSECTIONS (A)(1) AND (B)(1) OF THIS SECT ION SHALL BE DISTINC T AND 20
SEPARATE FROM ANY OT HER STATEMENT THAT T HE PURCHASER ACKNOWL EDGES. 21
(D) THE CLEAR AND CONSPIC UOUS STATEMENTS REQU IRED UNDER 22
SUBSECTIONS (A)(2) AND (B)(2) OF THIS SECTION SHAL L BE DISTINCT AND 23
SEPARATE FROM ANY OT HER STATEMENTS , DETAILS, TERMS, OR CONDITIONS . 24
(E) THIS SECTION DOES NOT : 25
(1) REQUIRE A PERSON TO D OWNLOAD A DIGITAL GO OD; OR 26
(2) PROHIBIT A PERSON FRO M STORING A DIGITAL GOOD ON A 27
SERVER THAT CAN BE A CCESSED THROUGH THE INTERNET. 28
(F) THIS SECTION DOES NOT APPLY TO A PERSON WHO ADVERTI SES OR 29
OFFERS FOR SALE : 30 6 HOUSE BILL 208
(1) A SUBSCRIPTION –BASED SERVICE THAT P ROVIDES ACCESS TO A 1
DIGITAL GOOD ONLY FOR THE DURATION OF THE SUBSCRIPTION ; 2
(2) ACCESS TO A DIGITAL GOOD WITHOUT THE REQUIREMENT FOR 3
MONETARY CONSIDERATI ON; OR 4
(3) A DIGITAL GOOD FOR WHI CH THE SELLER IS UNA BLE TO REVOKE 5
ACCESS AFTER COMPLET ION OF THE SALE, INCLUDING A DIGITAL GOOD THAT IS, AT 6
THE TIME OF PURCHASE , AVAILABLE FOR PERMAN ENT OFFLINE DOWNLOAD TO AN 7
EXTERNAL STORAGE SOU RCE TO BE USED WITHO UT A CONNECTION TO THE 8
INTERNET. 9
(G) A PERSON WHO VIOLATES THIS SECTION IS GUIL TY OF A MISDEMEANOR 10
AND ON CONVICTION IS SUBJECT TO A FINE NO T EXCEEDING $1,000 OR 11
IMPRISONMENT NOT EXC EEDING 1 YEAR OR BOTH. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2025. 14