ARTICLE
Let’s say someone walks into an old-fashioned record store looking for the Bright Eyes song “False Advertising.” Upon finding and buying the album, she’d have little reason to fear that store employees might sneak into her house later and take it back from her. She’d also have no cause to think that the album was counterfeit and not by the band at all. Now let’s say instead that the same song inspires an artist to create a mural depicting the FTC’s greatest false ad cases, and the mural gets displayed in a local gallery. The artist might be surprised if the gallery later shuts its doors and refuses to return the mural . . . or if some other company secretly reuses bits of it to make something else. Image When people buy or make digital products, though, it’s not always clear what they really own or control. Such clarity may often depend on intellectual property rights, which are generally beyond the FTC’s consumer protection jurisdiction. But we take note – and can take action – if companies aren’t upfront about what consumers are buying, who made it, how it was made, or what rights people have in their own creations. What do people think they’re buying? Companies that offer digital products – such as books, music, movies, and games – will often say that consumers can “buy” those products when they’re really getting only a limited, revocable license to enjoy them. Yes, some people may appreciate this distinction, but others have been surprised when their access to such products suddenly disappears. Companies are always obliged to ensure that customers understand what they’re getting for their money – a basic point we’ve made many times. In 2008, the FTC settled a case on this theme after Sony BMG misled CD buyers via its use of software that limited buyer use of the CDs. That same year, FTC staff resolved a similar matter after buyers who were told that they’d “own” Major League Baseball videos ran into unexpected use restrictions. Read more!
Let’s say someone walks into an old-fashioned record store looking for the Bright Eyes song “False Advertising.” Upon finding and buying the album, she’d have little reason to fear that store employees might sneak into her house later and take it back from her. She’d also have no cause to think that the album was counterfeit and not by the band at all. Now let’s say instead that the same song inspires an artist to create a mural depicting the FTC’s greatest false ad cases, and the mural gets displayed in a local gallery. The artist might be surprised if the gallery later shuts its doors and refuses to return the mural . . . or if some other company secretly reuses bits of it to make something else.
When people buy or make digital products, though, it’s not always clear what they really own or control. Such clarity may often depend on intellectual property rights, which are generally beyond the FTC’s consumer protection jurisdiction. But we take note – and can take action – if companies aren’t upfront about what consumers are buying, who made it, how it was made, or what rights people have in their own creations.
What do people think they’re buying?
Companies that offer digital products – such as books, music, movies, and games – will often say that consumers can “buy” those products when they’re really getting only a limited, revocable license to enjoy them. Yes, some people may appreciate this distinction, but others have been surprised when their access to such products suddenly disappears. Companies are always obliged to ensure that customers understand what they’re getting for their money – a basic point we’ve made many times. In 2008, the FTC settled a case on this theme after Sony BMG misled CD buyers via its use of software that limited buyer use of the CDs. That same year, FTC staff resolved a similar matter after buyers who were told that they’d “own” Major League Baseball videos ran into unexpected use restrictions. Read more!