WES MOORE, Governor Ch. 206 – 1 – Chapter 206 (House Bill 208) AN ACT concerning Consumer Protection – False Advertising – Digital Goods FOR the purpose of prohibiting a certain person from advertising or offering for sale a digital good using certain terminology or alongside an option for a time–limited rental unless a certain acknowledgments are acknowledgment is received from the purchaser and or a certain statements are statement is provided by the seller; establishing that a person is guilty of a misdemeanor and subject to a certain penalties penalty for a violation of this Act is an unfair, abusive, or deceptive trade practice; and generally relating to the advertising and offering of digital goods for sale. BY repealing and reenacting, with amendments, Article – Commercial Law Section 13–301(14)(xlii) and 14–2901 Annotated Code of Maryland (2013 Replacement Volume and 2024 Supplement) BY repealing and reenacting, without amendments, Article – Commercial Law Section 13–301(14)(xliii) Annotated Code of Maryland (2013 Replacement Volume and 2024 Supplement) BY adding to Article – Commercial Law Section 13–301(14)(xliv) and 14–2904 Annotated Code of Maryland (2013 Replacement Volume and 2024 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Commercial Law 13–301. Unfair, abusive, or deceptive trade practices include any: (14) Violation of a provision of: (xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] Ch. 206 2025 LAWS OF MARYLAND – 2 – (xliii) Title 14, Subtitle 48 of this article; or (XLIV) SECTION 14–2904 OF THIS ARTICLE; OR 14–2901. (a) In this subtitle the following words have the meanings indicated. (b) “Advertise” means: (1) To publish, circulate, disseminate, or place before the public in any way or through any medium for the purpose of selling merchandise; and (2) Advertising by: (i) Exterior or interior signs, including neon or other electrical signs; (ii) Radio, telephone, or television; and (iii) Newspaper, magazine, book, notice, or any other method or material. (C) “CLEAR AND CONSPICUOUS ” MEANS IN A MANNER TH AT CLEARLY CALLS ATTENTION TO T HE LANGUAGE, INCLUDING TEXT THAT IS: (1) IN LARGER TYPE THAN T HE SURROUNDING TEXT ; (2) IN A CONTRASTING TYPE , FONT, OR COLOR TO THE SURR OUNDING TEXT; OR (3) SET OFF FROM THE SURR OUNDING TEXT BY SYMB OLS OR OTHER MARKS. (D) “DIGITAL APPLICATION O R GAME” MEANS ANY APPLICATIO N OR GAME THAT A PERSON ACCESS ES AND MANIPULATES U SING A SPECIALIZED E LECTRONIC GAMING DEVICE , COMPUTER , MOBILE DEVICE , TABLET, OR OTHER DEVICE WITH A DISPLAY SCREEN , INCLUDING ANY ADD –ONS OR ADDITIONAL CO NTENT FOR THE APPLICATION OR GAME. (E) “DIGITAL AUDIO WORK ” MEANS A WORK THAT RE SULTS FROM THE FIXATION OF A SERIES OF MUSICAL, SPOKEN, OR OTHER SOUNDS THAT ARE TRANSFERRED ELECTRON ICALLY, INCLUDING: (1) PRERECORDED OR LIVE S ONGS; WES MOORE, Governor Ch. 206 – 3 – (2) MUSIC; (3) READINGS OF BOOKS OR OTHER WRITTEN MATERI ALS; (4) SPEECHES; (5) RINGTONES; OR (6) OTHER SOUND RECORDING S. (F) (1) “DIGITAL AUDIOVISUAL W ORK” MEANS A SERIES OF RE LATED IMAGES THAT, WHEN SHOWN IN SUCCES SION, IMPART AN IMPRESSION OF MOTION, TOGETHER WITH ACCOMP ANYING SOUNDS. (2) “DIGITAL AUDIOVISUAL W ORK” INCLUDES MOTION PICT URES, MUSICALS, VIDEOS, NEWS AND ENTERTAINME NT PROGRAMS , AND LIVE EVENTS . (G) “DIGITAL BOOK” MEANS A WORK THAT IS GENERALLY RECOGNIZED AS A BOOK AND IS TRANSF ERRED ELECTRONICALLY , INCLUDING A WORK OF FICTION OR NONFICTION . (H) (1) “DIGITAL CODE” MEANS A CODE THAT GR ANTS THE PERSON HOLDING THE CODE A R IGHT TO OBTAIN AN AD DITIONAL DIGITAL GOO D THAT MAY BE OBTAINED BY ANY M EANS, INCLUDING TANGIBLE F ORMS AND ELECTRONIC MAIL, REGARDLESS OF WHETHER THE CODE IS DESIGNATED AS A SONG CODE, VIDEO CODE, OR BOOK CODE . (2) “DIGITAL CODE” INCLUDES: (I) A A CODE USED TO ACCESS OR OBTAIN ANY SPECIF IED DIGITAL GOODS , OR ANY ADDITIONAL DI GITAL GOODS THAT HAV E BEEN PREVIOUSLY PURCHASED ; AND (II) PROMOTION CARDS OR CO DES THAT ARE PURCHAS ED BY A RETAILER OR OTHER BU SINESS ENTITY FOR US E BY THE RETAILER ’S OR ENTITY’S CUSTOMERS . (I) (1) “DIGITAL GOOD ” MEANS A DIGITAL APPL ICATION OR GAME , DIGITAL AUDIO WORK , DIGITAL AUDIOVISUAL WORK, DIGITAL BOOK, OR DIGITAL CODE, WHETHER ELECTRONICAL LY OR DIGITALLY DELI VERED OR ACCESSED . Ch. 206 2025 LAWS OF MARYLAND – 4 – (2) “DIGITAL GOOD ” DOES NOT INCLUDE A C ABLE TELEVISION SERVICE, SATELLITE RELAY TELE VISION SERVICE, OR ANY OTHER DISTRIB UTION OF TELEVISION, VIDEO, OR RADIO SERVICE . [(c)] (J) “Person” includes an association, firm, partnership, corporation, or an agent or employee of any of these entities. [(d)] (K) “Property”, as used in § 14–2902(a) through (c) of this subtitle, includes: (1) Merchandise; (2) Real estate; (3) Securities; (4) Employment; (5) A loan made at interest; (6) Any contract relating to real estate, securities, service, employment, or the making of loans at interest; or (7) Anything else of value. 14–2904. (A) A PERSON THAT IS A SELLER MAY NOT ADVERTISE OR OFFER FOR SALE A DIGITAL GOOD USING TERMINOLOGY THAT A R EASONABLE PERSON WOU LD UNDERSTAND TO CONFER AN UNRESTRICTED OWNE RSHIP INTEREST IN TH E DIGITAL GOOD, UNLESS, AT THE TIME OF BEFORE EXECUTING THE SALE: (1) THE SELLER RECEIVES A N AFFIRMATIVE ACKNOWLE DGMENT FROM THE PURCHASER O F THE FOLLOWING : (I) THAT THE PURCHASER IS RECEIVING A LICENSE TO ACCESS A DIGITAL GOOD; (II) A COMPLETE LIST OF RES TRICTIONS AND CONDIT IONS OF THE LICENSE; AND (III) THAT ACCESS TO THE DI GITAL GO OD MAY BE UNILATERALLY REVOKED BY THE SELLER IF THE PURCHASER NO LONGER HOLDS A RIGHT TO THE DIGITAL GOOD; AND OR WES MOORE, Governor Ch. 206 – 5 – (2) THE SELLER PROVIDES T O THE PURCHASER A CL EAR AND CONSPICUOUS STATEMEN T THAT: (I) STATES IN PLAIN LANGU AGE THAT THE PURCHAS ER IS BUYING A LICENSE FOR THE DIGITAL GOOD ; AND (II) INCLUDES A DIGITAL ME THOD TO ACCESS THE L ICENSE DETAILS, TERMS, AND CONDITIONS . (B) A PERSON MAY NOT ADVER TISE OR OFFER FOR SA LE A DIGITAL GOOD ALONGSIDE AN OPTION FOR A TIME–LIMITED RENTAL , UNLESS, AT THE TIME OF SALE: (1) THE SELLER RECEIVES A N AFFIRMATIVE ACKNOW LEDGMENT FROM THE PURCHASER O F THE FOLLOWING : (I) THAT THE PURCHASER IS RECEIVING A LICENSE TO ACCESS A DIGITAL GOOD; (II) A COMPLETE LIST OF RES TRICTIONS AND CONDIT IONS OF THE LICENSE; AND (III) THAT ACCESS TO THE DI GITAL GOOD MAY BE UNILATERALLY REVOKED BY THE SELLER IF THE PURCHASER NO LONGER HOLDS A RIGHT TO THE DIGITAL GOOD; AND (2) THE SELLER PROVIDES T O THE PURCHASER A CL EAR AND CONSPICUOUS STATEMEN T THAT: (I) STATES IN PLAIN LANGU AGE THAT THE PURCHAS ER IS BUYING A LICENSE FOR THE DIGITAL GOOD ; AND (II) INCLUDES A DIGITAL ME THOD TO ACCESS THE L ICENSE DETAILS, TERMS, AND CONDITIONS . (C) (B) THE AFFIRMATIVE ACKNOWLEDGMENTS ACKNOWLEDGMENT REQUIRED UNDER SUBSECTIONS SUBSECTION (A)(1) AND (B)(1) OF THIS SECTION SHALL BE DISTINCT AN D SEPARATE FROM ANY OTHER STATEMENT THAT THE PURCHASER ACKNOWLEDG ES. (D) (C) THE CLEAR AND CONSPIC UOUS STATEMENTS STATEMENT REQUIRED UNDER SUBSECTIONS SUBSECTION (A)(2) AND (B)(2) OF THIS SECTION SHALL BE DISTINCT AN D SEPARATE FROM ANY OTHER STATEMENTS , DETAILS, TERMS, OR CONDITIONS . Ch. 206 2025 LAWS OF MARYLAND – 6 – (E) (D) THIS SECTION DOES NOT : (1) REQUIRE A PERSON TO D OWNLOAD A DIGITAL GO OD; OR (2) PROHIBIT A PERSON FRO M STORING A DIGITAL GOOD ON A SERVER THAT CAN BE AC CESSED THROUGH THE INTERNET. (F) (E) THIS SECTION DOES NOT APPLY TO A PERSON WH O ADVERTISES OR OFFERS FOR SALE : (1) A SUBSCRIPTION –BASED SERVICE THAT P ROVIDES ACCESS TO A DIGITAL GOOD ONLY FO R THE DURATION OF TH E SUBSCRIPTION ; (2) ACCESS TO A DIGITAL G OOD WITHOUT THE REQU IREMENT FOR MONETARY CONSIDERATI ON; OR (3) A DIGITAL GOOD FOR WHI CH THE SELLER IS UNA BLE TO REVOKE ACCESS AFTER COMPLET ION OF THE SALE, INCLUDING A DIGITAL GOOD THAT IS, AT THE TIME OF PURCHASE , AVAILABLE FOR PERMANENT OFFLIN E DOWNLOAD TO AN EXTERNAL STORAGE SOU RCE TO BE USED WITHO UT A CONNECTION TO T HE INTERNET. (G) (F) A PERSON WHO VIOLATES THIS SECTION IS GUIL TY OF A MISDEMEANOR AND ON C ONVICTION IS SUBJECT TO A FINE NOT EXCEED ING $1,000 VIOLATION OF THIS SECTION IS: (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN THE MEANING OF TITLE 13 OF THIS ARTICLE; AND (2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS CONTAINED IN TITLE 13 OF THIS ARTICLE, EXCEPT §§ 13–408 AND 13–411 OF THIS ARTICLE OR IMPRISONMENT NOT EXC EEDING 1 YEAR OR BOTH. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2025. Approved by the Governor, April 22, 2025.