Official Summary Text
HB2010 - 572R - Senate Fact Sheet
Assigned to
RAGE����������������������������������������������������������������� AS
PASSED BY CONFERENCE COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 2010
digital
goods; seller's requirements; enforcement
Purpose
Outlines unlawful advertising practices for digital goods. Provides for
enforcement of the digital goods advertising requirements in accordance with
the Arizona Consumer Fraud Act.
Background
Statute outlines
trade and commerce practices and restrictions in general and for particular
industries or transactions, including certain advertising acts deemed
fraudulent and requirements for digital advertising directed toward children
(A.R.S. ��
44-1481
and
44-1483
).
The Arizona
Consumer Fraud Act protects consumers from unlawful practices in
merchant-consumer transactions and is enforced by the Attorney General (AG) and
by county attorneys with enforcement authority granted by the AG. The act, use
or employment by any person of any deception, deceptive or unfair act or
practice, fraud, false pretense, false promise, misrepresentation, concealment,
suppression or omission of any material fact with intent that others rely on
such concealment, suppression or omission, in connection with the sale or
advertisement of any merchandise whether or not any person has in fact been
misled, deceived or damaged is declared to be an unlawful practice under the
Arizona Consumer Fraud Act. Enforcement of the Arizona Consumer Fraud Act is
accomplished through the investigation of complaints filed by consumers,
enforcement actions against persons who have violated the Arizona Consumer
Fraud Act and public education. If a court finds that a person has willfully
violated consumer protection laws, the AG, upon petition to the court, may
recover up to $10,000 in civil penalties for each violation (
A.R.S. Title 44, Chapter 10,
Article 7
).
There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1.
Deems it 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 the following occur:
a)
at
the time of each transaction, the seller makes available to the purchaser:
i.
a complete list of restrictions and conditions for the license,
including any circumstances under which access may be revoked; and
ii.
notice that the license may be for a product that was altered from the
product's original version;
b)
at
the time of each transaction, the seller receives an affirmative
acknowledgement from the purchaser that the purchaser received:
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; and
iii.
a notice that the seller may unilaterally revoke access to the digital
good if the seller no longer holds the right to provide access to the digital
good, the service is shut down or discontinued or on the occurrence of any of
the circumstances that were specified by the seller; and
c)
before
executing each transaction, the seller provides to the purchaser a clear and
conspicuous statement that:
i.
states in plain language that buying or purchasing a digital good is a
license; and
ii.
includes a hyperlink, QR code or other similar method to access a
description of the terms and conditions of the license.
2.
Requires any affirmative acknowledgment from the purchaser or clear and
conspicuous statement to be distinct and separate from any other terms and
conditions of the transaction to which the purchaser acknowledges or agrees.
3.
Requires the seller, after the transaction is completed, to make
reasonable efforts to notify the purchaser by using the contact information the
purchaser provided at the time of purchase and offer a prorated refund only for
digital goods that were purchased for $20 or more if the terms of the license
change in a way that permanently and materially deprives the purchaser's
access.
4.
Requires the prorated refund to be calculated on a straight-line
declining basis at a rate of 20 percent of the original purchase price per year
from the date of purchase, with no refund available after the expiration of 5
years from the date of purchase.
5.
States that a seller
of a digital good satisfies the prorated refund
requirement by offering alternative access to the digital good.
6.
States that the digital goods advertising requirements do not:
a)
require
a person to download a digital good;
b)
prohibit
a person from storing a digital good on a server for access through the
internet;
c)
prohibit
a seller from implementing digital rights management technology to a digital
good that is advertised or offered to a person in accordance with the digital
goods advertising requirements; or
d)
prescribe
the technical specifications or formats under which a seller must make a
digital good available for download.
7.
States that the digital goods advertising requirements do not 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 by making a version of
the digital good available at the time of purchase for permanent offline
download to an external storage source or device 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; or
e)
an
educational or noncommercial digital good that is provided by a public library,
educational institution or open-source platform.
8.
Deems
a violation of the digital goods advertising requirements an unlawful practice
under the Arizona Consumer Fraud Act.
9.
Allows
the AG to investigate and take appropriate actions as provided by the Arizona
Consumer Fraud Act.
10.
Defines
blockchain-based
asset
as a digital good whose ownership and access are verified through a
decentralized ledger technology, including blockchain technology, and that
cannot be unilaterally revoked or altered by the seller after the transaction.
11.
Defines
clear and conspicuous
as a manner that clearly calls attention to the
language including:
a)
using
larger type than the surrounding text;
b)
using
contrasting type, font or color to the surrounding text of the same size; and
c)
setting off the surrounding text by using symbols or other marks.
12.
Defines a
digital
application or game
as 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.
13.
Defines
digital audiovisual work
as a series of related images and accompanying
sounds that when shown in succession impart an impression of motion including:
a)
motion
pictures;
b)
musicals;
c)
videos;
d)
news
and entertainment programs; and
e)
live events.
14.
Defines
digital audio work
as 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;
and
e)
ringtones or other sound recordings.
15.
Defines
digital book
as
a work that is generally recognized in the ordinary and usual sense as a book
of fiction or nonfiction and that is transferred electronically.
16.
Defines
digital code
as 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.
17.
Includes
in the definition of
digital code
:
a)
codes
that are used to access or obtain any specified digital goods or any additional
digital goods that have been previously purchased; and
b)
promotion cards or codes that are purchased by a retailer or other
business entity for use by the retailer's or entity's customers.
18.
Defines
digital good
as including any of the following, whether electronically
or digitally delivered or accessed:
a)
a
digital audiovisual work;
b)
a
digital audio work;
c)
a
digital book;
d)
a
digital code; and
e)
a digital application or game.
19.
Excludes
from the definition of
digital good
:
a)
a
cable television service;
b)
a satellite
relay television service; or
c)
any other distribution of television, video or radio service.
20.
Designates this legislation
as the
Making Internet Non-Ownership Understandable for Streaming Act
or
the
MINUS ACT
.
21.
Becomes effective on the
general effective date.
Amendments Adopted by Additional Committee of the Whole
�
Reduces, from 10 years to 5 years, the time period after a
transaction for a purchaser of a digital good to be eligible for a prorated
refund if there is a change in the terms of the license that affects the
purchaser's access.
Amendments
Adopted by Conference Committee
1.
Specifies
that the seller of a digital good, after the transaction is completed, must
make reasonable efforts to notify the purchaser by using the contact
information the purchaser provided at the time of purchase and offer a prorated
refund option
only for digital goods that were purchased for $20 or more
if the terms of the license change in a way that permanently and materially
deprives the purchaser's access.
2.
Requires
the prorated refund to be calculated on a
straight-line declining basis at a rate of 20 percent, rather than 10 percent,
of the original purchase price per year from the date of purchase.
3.
States
that a seller satisfies the prorated refund requirement by offering alternative
access to the digital good.
House
Action
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Senate
Action
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Prepared by Senate Research
April 16, 2026
JT/NRG/ci
Current Bill Text
Read the full stored bill text
HB2010 - 572R - C Ver
Conference Engrossed
digital goods;
seller's requirements; enforcement
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2010
AN
ACT
amending title 44, chapter 10, article 5,
arizona revised statutes, by adding section 44-1484; 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 44-1484, to read:
START_STATUTE
44-1484.
Digital goods; advertising disclosures; unlawful practice;
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
)
makes available 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
provide access 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
a
description of the terms and conditions of the license.
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
permanently and materially
deprives the
purchaser's access
and does not provide alternative
access to substantially similar content, the seller shall make reasonable
efforts to notify the purchaser by using the contact information the purchaser
provided at the time of purchase and shall offer a prorated refund
ONLY FOR DIGITAL GOODS that were PURCHASED FOR $20 OR MORE. �
THE PRORATED REFUND SHALL BE CALCULATED ON A STRAIGHT-LINE
DECLINING BASIS AT A RATE OF TWENTY PERCENT OF THE ORIGINAL PURCHASE PRICE PER
YEAR FROM THE DATE OF PURCHASE, WITH NO REFUND AVAILABLE AFTER THE EXPIRATION
OF five YEARS FROM THE DATE OF PURCHASE. �A seller satisfies this
subsection by offering alternative access to the DIGITAL good.
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. Prohibit a seller from
implementing digital rights management technology to a digital good that is
advertised or offered to a person pursuant to this section.
4. Prescribe the technical
specifications or formats under which a seller must make a digital good
available for download.
5. 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
by making
a version of the digital good available at the time of
purchase for permanent offline download to an external storage source
or device 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. 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.
END_STATUTE
Sec. 2.
Short title
This act may be cited as the
"Making Internet Non-ownership Understandable for Streaming Act or
the MINUS ACT".