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Australian Competition and Consumer Commission suing Valve over refund policy

Interesting to see how this shakes out. Publishers charge us more for digital products over here just because so it'd be nice if there was some benefit to buying locally.
Local digital what a dumb concept.
 

Goldenhen

Member
I
In any event, Australia 1 - Valve 0 as others have pointed out. It's times like these I wish I was Australian.

Trust me as an Australian person, you really don't want to live in Australia as a gamer because everything is expensive and the internet infrastructure is third world.
 
+1 for consumer rights and protections.

businesses won't suddenly pack up and leave if there is money to be made (and there is) just because of some hurt feelings or laws providing consumers some protection, and if they do, they don't deserve to be a business period.
 
Well done to the ACCC. If Valve wants to continue to let publishers set an Australia tax on their platform (Beyond Earth being the most recent culprit to get press) then they can abide by Aussie law, otherwise give us access to the US store and their prices.

Is it really okay for people to copy and paste entire articles on NeoGAF? That seems a little unfair. That's three in a row. Had to work pretty hard to get all these interviews and info.

I don't agree with it personally but at the very least the member has linked the article. It's not good form to paste the entire article but i wouldn't expect more then a slap on the wrist.

Sorry Mark.

EDIT: It's been fixed. Good form!
 
Pretty sure most of Europe has similar laws. If Valve decides to fight this, they'll undoubtedly find themselves under fire in more countries.
 
It's not corporate cheerleading when they state everywhere that there are absolutely no refunds. If you expect a refund, then you should expect prices to go up because creating and supporting an infrastructure for refunds is expensive as hell. I'd rather have cheap prices and awesome sales. So I say take it or leave it. You have a choice.
Origin has refunds. I doubt the infrastructure is "expensive as hell".
 

jambo

Member
I'm really interested to see if this leads to any real action in regards to the Australia Tax that applies to so many digital items that come down under.

Seems like it could be a stepping stone for the ACCC, if they even want to push the issue.
 

saunderez

Member
Origin has refunds. I doubt the infrastructure is "expensive as hell".

It's not. To comply with Australian law all they have to do is actually refund Australians who email them asking for a refund on a broken game and remove the mentions of "no refunds" for any Australian user when purchasing a game. That's literally all they have to do.
 

SmartBase

Member
They already do refunds but Valve being the geniuses that they are still have "no refunds" plastered everywhere so anyone not familiar with consumer law assumes there are no refunds.
 

jediyoshi

Member
It's not. To comply with Australian law all they have to do is actually refund Australians who email them asking for a refund on a broken game and remove the mentions of "no refunds" for any Australian user when purchasing a game. That's literally all they have to do.

What constitutes a broken game? What are the actual restrictions? Because given your scenario literally, all people literally could do is buy games, finish them, and then literally receive a refund under literally under auspice the consumer deems broken.

They already do refunds but Valve being the geniuses that they are still have "no refunds" plastered everywhere.

The funny part is that if they did have more articulated wording surrounding refunds, it's almost as if people wouldn't read it anyway. If they did that. Only if.
 

saunderez

Member
What constitutes a broken game? What are the actual restrictions? Because given your scenario literally, all people literally could do is buy games, finish them, and then literally receive a refund under literally under auspice the consumer deems broken.

No they couldn't do that because the act of playing the game to completion proves it's clearly not broken. Broken means that its not fit for purpose. If it's a single player game and it doesn't run or crashes its broken. If its a multiplayer game and you can't connect to the servers or it doesn't run or crashes it's broken. It's the same set of rules that apply to a physical product. If it's not fit for purpose you are entitled to a refund.

From the ACCC website

If you have a minor problem with a product or service, the business can choose to give you a free repair instead of a replacement or refund. When you have a major problem with a product, you have the right to ask for your choice of a replacement or refund. For a major problem with a service, you can choose to receive compensation for the drop in value below the price paid, or a refund.

They then go on to define a major problem

What is a major problem?

A product or good has a major problem when:

*it has a problem that would have stopped someone from buying it if they’d known about it
*it is unsafe
*it is significantly different from the sample or description
*it doesn’t do what the business said it would, or what you asked for and can’t easily be fixed.

A service has a major problem when:

*it has a problem that would have stopped someone from buying it if they’d known about it
*it is substantially unfit for its common purpose and can’t easily be fixed within a reasonable time
*it does not meet the specific purpose you asked for and cannot easily be fixed within a reasonable time
*it creates an unsafe situation.

Playing a game to completion would clearly not meet the criteria of a major problem.
 
They already do refunds but Valve being the geniuses that they are still have "no refunds" plastered everywhere so anyone not familiar with consumer law assumes there are no refunds.

Which is part of why the ACCC is taking on Valve right now as doing that runs in contrast to Aus law I believe. You actually have to state that refunds are available and not deceive your customers into thinking otherwise.
 

Zoned

Actively hates charity
Man Suanderez is pretty aggressive, but I like the posts he has made in this thread. That guy saying close the shop in AUS, yo you serious? Probably made a mistake by typing bs in the thread lol
 
They then go on to define a major problem

It is nice that they want the software industry to solve these things however their guidelines are oriented around people buying cars, home improvements and toasters from Aldi. Not software.

All software is buggy, how do you draw the line between acceptably buggy and irredeemably buggy? It is impossible and a government department would have to grow another department to arbitrate disputes.

Better to adjust the legislation so that software refunds on digital downloads are allowed if the logged time of use is below some number of hours. What would it cost Valve to offer a refund on something? their delivery cost is practically zero. There just needs to be a system that isn't exploited by kids who will use it to play everything for free for a weekend.
 

saunderez

Member
It is nice that they want the software industry to solve these things however their guidelines are oriented around people buying cars, home improvements and toasters from Aldi. Not software.

There's no difference in my mind. A game that I cannot play is no different to a DOA motherboard or a lemon of a car or a toaster that fails to make toast. I should and do have the right to a refund. And sure, a refund policy could be exploited, but I think this will be and is minority of cases where it already exists. If Valve can prove a user is exploiting their policy they have every right to enforce their ToS.

I say this as someone who has never asked for a refund on software. Every piece of software I have ever bought has been fit for purpose. I have come close a couple of times though, and when the time does come I expect to get one with little to no resistance.
 

jambo

Member
It is nice that they want the software industry to solve these things however their guidelines are oriented around people buying cars, home improvements and toasters from Aldi. Not software.

All software is buggy, how do you draw the line between acceptably buggy and irredeemably buggy? It is impossible and a government department would have to grow another department to arbitrate disputes.

Better to adjust the legislation so that software refunds on digital downloads are allowed if the logged time of use is below some number of hours. What would it cost Valve to offer a refund on something? their delivery cost is practically zero. There just needs to be a system that isn't exploited by kids who will use it to play everything for free for a weekend.

Wouldn't it be smarter to put a refund system in, and then just stop anyone from abusing it over and over and over?

I suppose they can make new accounts for every game, but I'm sure valve can do some IP checking.
 
If you don't like it, don't use it. There are other ways to buy videogames. Valve should just stop selling in Australia.

What an absolutely ignorant comment. No words.

If Valve will let any broken and unfinished piece of crap game be sold on their store, they should take responsibility and offer a refund if the game is in some way unplayable. It is consumer policy in most developed countries in the world to have an option for refund if your product does not work as intended. I understand not having refunds for change of mind and other simple reasons, but when they let shit like War Z or Colin McRae Rally onto the store, selling the shoddiest, underdeveloped games in the market or using false advertising to get sales, they owe it to their customers to have that option, like any store.
 

Antiwhippy

the holder of the trombone
It is nice that they want the software industry to solve these things however their guidelines are oriented around people buying cars, home improvements and toasters from Aldi. Not software.

All software is buggy, how do you draw the line between acceptably buggy and irredeemably buggy? It is impossible and a government department would have to grow another department to arbitrate disputes.

Better to adjust the legislation so that software refunds on digital downloads are allowed if the logged time of use is below some number of hours. What would it cost Valve to offer a refund on something? their delivery cost is practically zero. There just needs to be a system that isn't exploited by kids who will use it to play everything for free for a weekend.

They could just do an EA and have a set time where refunds are available. Sure people can abuse it but I'm going to bet that 99% won't.
 

Jintor

Member
I can't believe someone was seriously arguing valve should just jettison Australia entirely and then trying to caveat emptor their way out of the argument. Are you mad? Do you have any idea about how consumer protection principles are meant to apply?
 

SmartBase

Member
I can't believe someone was seriously arguing valve should just jettison Australia entirely and then trying to caveat emptor their way out of the argument. Are you mad? Do you have any idea about how consumer protection principles are meant to apply?

That argument also assumes Valve somehow blindly enters markets without knowing their laws. Ridiculous.
 
It's not corporate cheerleading when they state everywhere that there are absolutely no refunds. If you expect a refund, then you should expect prices to go up because creating and supporting an infrastructure for refunds is expensive as hell. I'd rather have cheap prices and awesome sales. So I say take it or leave it. You have a choice.

Well you're talking out of your ass here, you don't have any idea quite how expensive refund infrastructure is do you?
By your logic Steam should rid itself of all support infrastructure as it is expensive as hell. Put up signs saying no support and if you don't like it don't use it. USA USA USA (where the S is Steam. The A is also Steam)

I do understand though. It's why I said they should close up shop in Australia.

This is definitely the most logical course of action, I concur.

On a side note, I've personally dealt with Valve before and got a refund (albeit in the form of Steam credit)

that's not a refund. that is an exchange. You gave Steam x amount of real moneys, they gave you some virtual currency back only to be spent on more of their products.

It wouldn't benefit me because I have realized I am an adult who can make adult decisions, and buying these games is always a choice of mine, and I should be held completely responsible for my choices, especially when there's signs everywhere telling me my consequences.

So anyone who ever requests a refund is a child? Wow.
If someone steals your credit card and blows $100k do you ask the bank for your money back or no? Because you made a choice to get a credit card knowing such a thing could happen and maybe you should take complete responsibility for that.


oh wow

I just wrote in complaining about a purchase as a shot in the dark. As you can see I like stating my opinion so I had no problem doing it. I didn't expect it, but got the credit applied back to my account. It was actually pleasant.

No you weren't just complaining about a purchase as a shot in the dark, you were being a goddamn hypocrite.

It is nice that they want the software industry to solve these things however their guidelines are oriented around people buying cars, home improvements and toasters from Aldi. Not software.

All software is buggy, how do you draw the line between acceptably buggy and irredeemably buggy? It is impossible and a government department would have to grow another department to arbitrate disputes.

Better to adjust the legislation so that software refunds on digital downloads are allowed if the logged time of use is below some number of hours. What would it cost Valve to offer a refund on something? their delivery cost is practically zero. There just needs to be a system that isn't exploited by kids who will use it to play everything for free for a weekend.

I think introducing some of arbitrary time limit is a worse distinction than between buggy and not buggy. What if a game came out that works fine for the first 10 hours and then you can never finish the rest of the game? There would eventually be some recompense I'm sure but it may be delayed until the problem is widespread and acknowledged and if their policy is you can't have a refund after x amount of hours maybe they could hold out on you.
 

JaseC

gave away the keys to the kingdom.

I'm not surprised. Valve set up a support office in Luxembourg expressly to avoid changing general policy:

11. APPLICABLE LAW/JURISDICTION

For Subscribers other than EU Subscribers:

You agree that this Agreement shall be deemed to have been made and executed in the State of Washington, U.S.A., and any dispute arising hereunder shall be resolved in accordance with the law of Washington. Subject to Section 12 (Dispute Resolution/Binding Arbitration/Class Action Waiver) below, you agree that any claim asserted in any legal proceeding by you against Valve shall be commenced and maintained exclusively in any state or federal court located in King County, Washington, having subject matter jurisdiction with respect to the dispute between the parties and you hereby consent to the exclusive jurisdiction of such courts. In any dispute arising under this Agreement, the prevailing party will be entitled to attorneys’ fees and expenses.

For EU Subscribers:

You agree that this Agreement shall be deemed to have been made and executed in the Grand Duchy of Luxembourg and that it is subject to the laws of Luxembourg, excluding the law of conflicts and the Convention on Contracts for the International Sale of Goods (CISG). However, where the laws of Luxembourg provide a lower degree of consumer protection than the laws of your country of residence, the consumer protection laws of your country shall prevail. In any dispute arising under this Agreement, the prevailing party will be entitled to attorneys’ fees and expenses.

Expect a similar SSA update in the not-too-distant future.

Anyone got any idea how many sales Valve makes in the Australian region?

The entire Oceania region accounted for 5% of Steam's sales revenue last year:

steam-sales-610x365.jpg
 

ShadyJ

Member
If you have bought a game and haven't installed it yet Damn right you should be able to claim a refund and have it removed from your library
 

JaseC

gave away the keys to the kingdom.
If you have bought a game and haven't installed it yet Damn right you should be able to claim a refund and have it removed from your library

Worse still is Valve refuses to provide refunds on unused gifts despite the fact that the beginning of the auto-refund process states the exact opposite:

refundy8fax.jpg


I mentioned this in my ticket, but my request was still denied:

refundreq6cs7p.jpg


If nothing else, refunds on Early Access games should most definitely be general policy considering, by their very nature, they have an uncertain future (i.e. there should be some protection for users when a game is abandoned or development is otherwise halted). It's amusing that Gabe often speaks about how whenever Valve makes a decision the question of "How will this benefit our customers?" is asked yet absolutely no effort has been made to improve support policies outside of the account restriction system replacing account bans/suspensions.
 

Soule

Member

The drop off is pretty crazy considering 5% is the 3rd largest territory by sales, even still I don't think it matters as this is something they should definitely be addressing (right after their customer service in general which is horrendous). Also I have to say that poster on the first page was outrageous, you'd think consumer rights had assaulted them as a child the way they were acting - this is a good thing :\
 

Jams775

Member
There's no difference in my mind. A game that I cannot play is no different to a DOA motherboard or a lemon of a car or a toaster that fails to make toast. I should and do have the right to a refund. And sure, a refund policy could be exploited, but I think this will be and is minority of cases where it already exists. If Valve can prove a user is exploiting their policy they have every right to enforce their ToS.

I say this as someone who has never asked for a refund on software. Every piece of software I have ever bought has been fit for purpose. I have come close a couple of times though, and when the time does come I expect to get one with little to no resistance.

I agree that Valve should offer better refund options, but I have a question for you regarding "broken" games.

  • What if the persons computer is the reason the single player game won't run? What if it's conflicting software? Does Valve still have to issue a refund?
  • What if the multiplayer game won't connect because the player's router or anti-virus is blocking ports for the game to work? Does Valve still have to issue a refund?

I don't believe offering refunds for digital software is quite as straight forward as refunds for physical products. Then again, I can go to Lowes, buy a light bulb and return it because it didn't fit the socket at my house. I have heard somewhere though that refunds are calculated into the prices of products. Hopefully Valve can put into place a decent refund system that everyone can use.
 

Card Boy

Banned
Well obviously i'm on the ACCC's side of things. If companies like GOG, GMG and 'evil' EA can do refunds then Valve has no fucken excuse. It's bullshit that a broken or falsely advertised product can be sold on the service and Valve can take the money and run.

As with most software products, unless required by local law, we do not offer refunds or exchanges on games, DLC or in-game items purchased on our website or through the Steam Client. Please review Section 3 of the Steam Subscriber Agreement for more information.

Cool let us have refunds then Valve.
 

legend166

Member
The fact that they don't already have those things is amazing really. In the worst possible way.

How much revenue do they generate through the Steam store on an annual basis? It would be well over a billion dollars at this point. And yet their customer support is truly laughable.
 
It isn't my choice that the game is broken, but it is my choice that I spent money on a broken game. In the days of YouTube and Twitch, you can get a pretty damn good idea if you'll enjoy a game or not before buying it.

Who the heck has time for that? If Valve says it works, it should bloody work, and there are times when it hasn't been the case.
 

bomma_man

Member
The drop off is pretty crazy considering 5% is the 3rd largest territory by sales, even still I don't think it matters as this is something they should definitely be addressing (right after their customer service in general which is horrendous). Also I have to say that poster on the first page was outrageous, you'd think consumer rights had assaulted them as a child the way they were acting - this is a good thing :\

It's not bad considering the population of Oceania is less than that of UK, which isn't even the most populous country in Europe.
 

JaseC

gave away the keys to the kingdom.
Kotaku got their hands on the application papers for the ACCC lawsuit

http://www.kotaku.com.au/2014/09/the-acccs-list-of-demands-for-valve/

They want Valve to create an email address, 1800 toll-free number and PO Box, with (local?) representatives to deal with all refunds.

As far as I know Valve has no staff in Australia, so this could be interesting if the ACCC are successful.

I'd nominate myself for local online support. The Steam threads are collectively my resume.
 

danm999

Member
Good on the ACCC for forcing this issue for us Australian consumers. I like Valve, but they're seriously behind in this regard when it comes to digital refunds.

I also hope any positive changes as a result of this challenge can flow out to the rest of the world.
 
They want Valve to create an email address, 1800 toll-free number and PO Box, with (local?) representatives to deal with all refunds.

Could happen:

ACCC: We demand all of the above and it needs to be done soon.
Valve: lol nope.
ACCC: Ok, then we will direct Valve to the online gambling regulators in Australia.
Valve: People in Sydney, Melbourne and Perth ok?

Success puts you on the radar and one day Valve (and others) are going to have to make some big changes.
 

Dryk

Member
Update: The ACCC wins again


Valve’s defence was based around the fact that it doesn’t officially conduct business in Australia, only admitting it provided access to an online access portal to video games through a client. Valve denied this falls into the definition of ‘goods’ in Australian consumer law. Valve also maintained the Steam Subscriber Agreement is the law of the State of Washington, United States of America — not the law of Australia.

But the Australian Federal court disagreed, and found that Valve made misleading statements to consumers in its terms and conditions contained in three versions of its Steam Subscriber Agreement and two versions of its Steam Refund Policy. These misleading statements all focused on the rights of Australian consumers to a refund if they’ve been sold a faulty or defective product.

Justice Edelman that Valve was doing business in Australia and, as such, was bound to operate within Australian Consumer Law.
 

grimmiq

Member
Is this still even an issue with the 2 week/2hr refund policy?

Reading the link...Needing a PO box to deal with refunds for a digital product seems a bit pointless.
 
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