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