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GameStop has been sued in California federal court in a proposed class action accusing the video game retailer of misleading customers who purchase digital games by failing to disclose that they are acquiring only revocable licenses, not full ownership of the content.

In a complaint filed January 8, plaintiff Jake Weber of Lincoln, California, alleges that GameStop violated the California Digital Property Rights Transparency Law by marketing digital video games as items consumers can “buy” without clearly informing them that the purchase grants only a limited, nonexclusive, and nontransferable license. Weber argues that the license can be revoked at the discretion of the game publisher, unlike a physical copy purchased in store.

“California law prohibits this kind of bait and switch,” the complaint states.

According to the lawsuit, GameStop’s website lists numerous titles with options to “buy” or “buy online,” but does not disclose that digital versions differ fundamentally from physical copies. Customers selecting a game are offered choices such as “New,” “Digital,” or “Pre Owned,” yet are not clearly told that the digital option does not confer ownership in the traditional sense, the suit alleges.

Weber claims that throughout the checkout process, from adding items to the cart through final payment, GameStop does not require consumers to acknowledge that they are purchasing a license that may later be withdrawn. By contrast, competing platforms such as Steam explicitly inform users before purchase that digital games are licensed rather than owned, the complaint says.

“In the past, when consumers ‘bought’ something, they could reasonably assume they were obtaining full property rights,” Weber alleged. “With digital goods, that assumption no longer holds, yet consumers are often not told this reality.”

The lawsuit points to heightened public concern over digital ownership following high profile incidents in which access to purchased content was removed. One example cited is French publisher Ubisoft’s decision to withdraw access to the game The Crew, an episode that drew scrutiny from lawmakers.

The complaint says those concerns prompted California legislators to enact the Digital Property Rights Transparency Law, which is intended to ensure that consumers “clearly know and understand the nature of their transactions,” including the possibility that they do not gain permanent ownership of digital purchases.

Weber alleges that GameStop’s practices violate California’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act. He seeks to represent a proposed class of California consumers who purchased digital video games from GameStop.

The lawsuit was filed the same day Apple was sued in California state court over similar claims involving digital video content sold through Apple TV. Amazon has also faced comparable litigation from customers alleging they do not truly own movies and television programs they believed they had purchased.

GameStop recently disclosed in a quarterly filing with the U.S. Securities and Exchange Commission that it has been aggressively cutting costs, including closing hundreds of U.S. stores and exiting several international markets. The company said it closed 590 U.S. stores during fiscal year 2024 and expects additional closures in fiscal 2025.

Attorneys for Weber and representatives for GameStop did not immediately respond to requests for comment.

Weber is represented by Stefan Bogdanovich and Philip L. Fraietta of Bursor and Fisher PA. Counsel for GameStop has not yet been identified.

The case is Jake Weber v. GameStop, case number 2:26 at 00047, in the U.S. District Court for the Eastern District of California.