U.S. Senator Presses FTC Over Digital Purchases

U.S. senator Ron Wyden of Oregon is pressing the Federal Trade Commission (FTC) to stop companies from misleadingly offering people the ability to “buy” online content, including e-books and audiobooks, given that consumers do not have total control over their purchases.

When “buying” digital goods, consumers often learn that they cannot own, sell, or transfer those items, and may even have them deleted with no recourse, a legal loophole that companies such as Amazon and Apple only explain in their finely printed terms of service.

In his letter to FTC chair Andrew Ferguson, Wyden wrote: “This information should be presented before and at the point of sale in a way that is clear and understandable for consumers, so that they can use all the information at hand to determine if they want to purchase or rent the product at the offered price. To put it simply, prior to agreeing to any transaction, consumers should understand what they are paying for and what is guaranteed after the sale.”

As companies increasingly shift to producing digital rather than physical content, consumers are often left vulnerable and susceptible to getting less than what they paid for. Amazon, for example, recently announced that consumers would no longer be able to download or back up their e-books, making it more difficult for them to access and keep their purchases.

Wyden concluded that the “shift from physical to digital goods presents some complex legal questions. One thing is clear, however: consumers deserve transparency about their ownership rights in digital goods.”