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Valve runs into legal trouble in Australia over Steam refund policy
It seems that Valve Corp’s Steam refund policy came too little too late to prevent the company from being found guilty of breaching Australia’s consumer protection laws.
The Australian Competition and Consumer Commission (ACCC) has ruled that Valve violated Australian Consumer Law (ACL) by not offering a refund policy for games or other programs purchased through its digital storefront, Steam. While Steam actually does have a lenient refund policy now, the platform did not have one when the ACCC first launched its lawsuit against Valve in 2014.
At the time, Valve argued that it was exempt from the law regarding refunds because it did not officially conduct business in Australia, but the court has dismissed that claim, saying that several Steam policies included language specifically intended to avoid guaranteeing the quality of digital goods or offering refunds for products purchased through Steam.
“The Federal Court’s decision reinforces that foreign based businesses selling goods and/or services to Australian consumers can be subject to Australian Consumer Law obligations, including the consumer guarantees,” ACCC Chairman Rod Sims said in a statement.
“In this case, Valve is a US company operating mainly outside Australia, but, in making representations to Australian consumers, the Federal Court has found that Valve engaged in conduct in Australia. It is also significant that the Court held that, in any case, based on the facts, Valve was carrying on business in Australia.”
“This is also the first time Courts have applied the extended definition of ‘goods’ to include ‘computer software’ in the ACL. It will provide greater certainty where digital goods are supplied to consumers through online platforms.”
“Consumer issues in the online marketplace are a priority for the ACCC and we will continue to take appropriate enforcement action to hold businesses accountable for breaches of the ACL.”
In its press release, the ACCC claimed that Steam has over 2.2 million users who live in Australia.
Image courtesy of Valve Corp
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