The Australian Competition and Consumer Commission (ACCC) has ruled that US online video game reseller Valve was in breach of Australian Consumer Law by telling customer’s they were not entitled to a refund for digital software.
The case began in August 2014 when the ACCC sued Valve for not providing customers with a way to refund products.
Valve argued that it doesn’t officially conduct business in Australia, and that providing access to digital software through its online distribution platform Steam doesn’t fall under Australia’s definition of ‘goods’.
The Australian federal court ruled that Valve was indeed operating within Australia, and is therefore obligated to offer refunds in line with Australian consumer law.
The court also found that Valve “excluded statutory guarantees and/or warranties that goods would be of acceptable quality” and “restricted or modified statutory guarantees and/or warranties of acceptable quality”.
ACCC chairman Rod Sims noted that it was the first time Australian courts have applied the term ‘goods’ to software, and reinforced that foreign companies are required to abide by Australian consumer law.
“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,” said Sims.
“It is also significant that the court held that, in any case, based on the facts, Valve was carrying on business in Australia.”
In June 2015, Valve implemented a global refund system, allowing customers to return digital software for any reason, provided the purchase was made less than 14 days ago and has been used for less than two hours.
The US-based company’s Steam platform is available in 237 countries with a subscriber base of around 125 million as of February 2015. Steam predominately distributes video games, as well as software development tools and movies.
A hearing on relief will be held at a later date.
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