Public Knowledge, Library Groups, Others Urge FTC to Define Digital Ownership

From Public Knowledge:

Today, Public Knowledge joined 16 other public interest, consumer rights, and library groups in a letter urging Federal Trade Commission Chairman Andrew Ferguson to protect consumers in the digital marketplace by establishing clear ground rules for digital ownership and sales of goods. The groups argue that “ownership must mean something in the digital age” and that “if a transaction does not include the essential rights of preservation, use, and transfer, it should not be marketed or labeled as a sale.” The letter asks Chairman Ferguson to provide “definitional clarity” to bring honesty and transparency to the digital marketplace – and to restore consumer trust.

The following is an excerpt from the letter:

“Americans understand ownership to mean more than mere temporary access – it means control. It means they have bought something, not leased it on someone else’s terms. These expectations do not vanish when the format shifts from physical to digital. Yet today’s digital platforms often advertise a “sale” while delivering only a revocable license – without disclosing the limitations until after the purchase. This is not just a failure of transparency; it is a distortion of basic consumer understanding.

“To that end, we urge the FTC to define the term ‘digital sale’ in a way that reflects traditional ownership rights. Specifically, a transaction should only be labeled as a sale if it includes:

• The Right to Use: Ownership must mean continued access and the ability to use the digital product. If a digital store closes or a service ends, users should retain functional access to their media.

• The Right to Preserve: Consumers must have the technical and legal ability to archive, repair, and back up digital purchases. Ownership must allow consumers to ensure they can still access and use their stuff even after a platform ends support or the content is removed from a catalog.

• The Right to Transfer: Like physical goods, digital products should be transferable. Whether by lending to a friend, leaving to children in a will, donating to a library, or reselling, consumers deserve to exercise this traditional ownership prerogative.

“These ownership rights are critical to restoring and maintaining the public’s trust in digital marketplaces. Without them, Americans are paying the same or even higher prices for digital goods that can be revoked, altered, or rendered inaccessible without warning – scenarios we’ve already witnessed in cases involving Sony, Amazon, and others, as Senator Wyden highlights in his letter.

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Filed under: Libraries, News, Patrons and Users, Preservation