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Valve Loses Australian Court Battle Over Steam (computerworld.com.au)

angry tapir writes: Valve Software has lost court action launched against it by the Australian Competition and Consumer Commission. The Australian court case centered on the refund policies of Valve Software's Steam digital distribution service. Some of Steam's refund policies contradicted the statutory guarantees of the Australian Consumer Law, the court found. A hearing on penalties is yet to be held.
Such "false or misleading representations about guarantees" include: consumers were not entitled to a refund for digitally downloaded games purchased from Valve via the Steam website or Steam Client (in any circumstances); Valve had excluded statutory guarantees and/or warranties that goods would be of acceptable quality; and Valve had restricted or modified statutory guarantees and/or warranties of acceptable quality. Valve has contested ACCC's arguments on a number of grounds.

38 of 178 comments (clear)

  1. EULAs are bullshit ... by gstoddart · · Score: 5, Insightful

    It's an attempt by corporations to rewrite/bypass existing laws, and prevent you from having any recourse by forcing you to agree to arbitration (conducted by someone friendly to the outcome of the corporation).

    Despite the idiocy we've been seeing as courts (*cough* American *cough*) decide it's OK for companies to fuck over consumers with bullshit EULAs which skirt around the law, I'm glad to see some common sense.

    Of course, expect the next round of "trade negotiations" (*cough* American *cough*) to work to undermine this.

    Because, let's face it, America is all lubed up and on the payroll of multinational corporations.

    --
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    1. Re:EULAs are bullshit ... by Speck'sBacon · · Score: 2

      Who has time to read hundreds of pages of poorly written dribble?

      Apparently, not Congresspeople. "We have to pass the bill in order to find out what's in it," like it's a Cracker Jack prize.

    2. Re:EULAs are bullshit ... by ArylAkamov · · Score: 2

      Many EULAs are so poorly written I question how enforceable they are.

      Ever since this happened, I always take the time to read them to see if they try to slip in any kind of weird, horrifying or funny shit.

      http://www.geek.com/games/game...

      Have not found anything noteworthy yet though besides the usual "Fuck consumer rights, sign here to hand them over".

      The Itunes user agreement was kind of amusing. Something along the lines of "By using this software, you agree not to use it for developing biological or nuclear weapons".

    3. Re:EULAs are bullshit ... by Anonymous Coward · · Score: 2, Insightful

      Well outside of the US, EULA's aren't enforceable if they directly or indirectly attempt to bypass your local laws. This is true in Canada, where companies who don't have regional EULA's suddenly find themselves up shits creek and have injunctions slapped against them.

    4. Re: EULAs are bullshit ... by Bert64 · · Score: 5, Insightful

      But because the rest of the contract remains in force, companies have no reason not to pack a contract full of unenforceable garbage... Many people simply aren't aware of their rights and will follow the unenforceable bits out of fear.

      Adding clauses which are unenforceable should be seen as bad faith and result in penalties for anyone presenting such contracts.

      --
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    5. Re:EULAs are bullshit ... by butzwonker · · Score: 2
      Here is what everyone should do (unless you absolutely need the product):

      Print out the EULA and mark all passages you would like to change clearly. Indicate the changes you would like to suggest, point to reformulations and strike through passages you do not agree with. Make your changes reasonable. The last thing is important, don't make jokes. Put the revised EULA in an envelope, address it to the company's customer service, and in a short polite covering letter point out that (a) you do not agree with the original EULA, and (b) have taken the liberty of suggesting changes of the contract that should be of a mutual benefit. Suggest a reasonable amount of time for review, say, six weeks, and inform them that in case you do not hear from them within that time frame, then you will assume their implicit agreement, in the form of a a social contract, that the new, improved EULA is in place. (The last point is probably moot, but so is the original EULA in most jurisdictions.) Point out that you are not a lawyer, that you like their company and the product, and that the changes are beneficial to both parties and also in your opinion comply better with the law. A few thousands to tens of thousands of such letters would suffice to force the company to make a reasonable EULA.

    6. Re:EULAs are bullshit ... by Jahoda · · Score: 2

      Dude, what is the deal with this around here??? It's DRIVEL. It is not, and has never been DRIBBLE.

  2. Re: After I got banned from even playing single-pl by Anonymous Coward · · Score: 3, Interesting

    If they keep you from running a game you bought within the first 90 days, do a chargeback. If you own a bunch of Steam games, it might not be worth it since they'll ban you from playing the other games you paid for.

  3. Re:For once... by carbs77 · · Score: 2

    It was bound to happen eventually. As an Australian though, it would be nice for the ACCC to deal with the price fixing issue too. But one thing at a time :-D

  4. Re:Excessive regulation by netwiz · · Score: 5, Insightful

    I dunno about you, but I like to have at least the minimum protection that the products I buy somewhat resemble what it says on the box, rather than simply being a box full of a picture of a duck in a funny hat. Because fuck you, that's why.

  5. Re: After I got banned from even playing single-pl by ArylAkamov · · Score: 3, Insightful

    This, might be a good idea to use multiple steam accounts to try and limit the damage.

    And before people get on my ass, yeah, he fucked up by either cheating or breaking the rules, sure. No sense in banning him from singleplayer though, that's just insulting.

    Probably won't happen anytime soon, but the shitfest that's going to happen when steam shuts down will be crazy.

  6. Title rewording by gringer · · Score: 4, Funny

    More punny title: Valve Loses Steam in Australian Court Battle

    --
    Ask me about repetitive DNA
  7. Good by shione · · Score: 5, Interesting

    I like steam but this is good that the ACCC took them to court and won. Their refund policy is BS. I bought payday 2 ( http://store.steampowered.com/... ) when it had just came out for something like US$25 full price. I trusted the word of the developer who said it would NEVER have microtransactions ( http://steamcommunity.com/app/... ) in the game. Those scumbag developers then added in microtransactions anyway turning it on a P2W game. I tried multiple times through steam to get it refunded and each time I got a template response from steam denying the refund. If this was sold in the shops in Australia it would be ILLEGAL because it was not what I bought nor was it advertised as such to have microtransactions.

    I will never buy a overkill game again.

    1. Re:Good by nnull · · Score: 4, Interesting

      Steam definitely has a ridiculous return policy for Americans. It's absolute absurdity. Even Amazon has a better return policy for games than Steam. So much so I now outright refuse to preorder any games or even buy any games on release thanks to Steam.

    2. Re: Good by phayes · · Score: 5, Insightful

      No, he's said that changing a major characteristic of the game after the fact to make it necessary to buy more stuff to continue playing changes the game to the point that one would no longer wish to have purchased it. Funny that you were unable to understand that.

      --
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  8. Agreements can change at any time by WaffleMonster · · Score: 5, Interesting

    What I absolutely love about steam in particular is they grant themselves the right to "alter the deal".
    https://www.youtube.com/watch?...

    Lets say you have spent a fortune on steam games.

    They decide they are big enough they can do whatever they want and decide to start charging monthly fees or install spyware uploading contents of your computer to the New York Times or perhaps they just decide they don't want to support you anymore and unilaterally shut down the service.

    If you don't like the new deal and don't accept it your account is shut down and you lose access to everything you ever paid for without any compensation or recourse. You of course also "agreed" to submit to binding arbitration.

    This crap is why I don't play games anymore. It just isn't any fun when everyone has this kind of contempt for their customers trying to fuck people over asserting they don't own anything and have no rights.

    1. Re:Agreements can change at any time by Anonymous Coward · · Score: 5, Insightful

      This crap is why I don't play games anymore. It just isn't any fun when everyone has this kind of contempt for their customers trying to fuck people over asserting they don't own anything and have no rights.

      Not everyone. Buy from GOG instead of Steam. They'll sell you DRM-free plain old locally playable games, no network-permission needed to play, no ability for anyone to switch off your game collection later on. They'll work as long as you have a PC or something that can emulate one.

      You want that model to succeed? Buy your games there. They don't have as big a collection as Steam, yet, but it's growing fast. If everyone makes sure that business model succeeds, then game companies will be forced to support it, because that's where the buyers are.

      On the other hand, if everybody keeps buying lock-in and DRM ala Steam, well... that's what you're gonna get. Put your money towards the world you want to see. Make sure companies selling DRM-free games succeed, and those with needless online activation fail. Game studios need your money to stay in business, but you don't need their games. That means you have all the power, and they have none. Use it wisely.

    2. Re:Agreements can change at any time by evolutionary · · Score: 2

      DRM free my friend. Works for me. I have never installed steam and I never willl. gog.com appears to have all my gaming needs (when we get the odd break from life..) and I can find no funny business in their installers. . humblebundle is okay...as long as you avoid the steam crap (and especially the ubisoft drm. While humblebundle are mostly steam poster boys, they do sometimes have drm free bundles are truly a bargain (sometimes mixed with games that are steam only for which I consistently give $1..serves them right to mix poison with food). But gog.com appears to have remained pure and it's good to have choices.

      --
      "Imagination is more important than knowledge" - Einstein
    3. Re:Agreements can change at any time by Anonymous Coward · · Score: 2, Interesting

      I mostly buy my games via the Humble Store which offers both DRM-free downloads and Steam keys. I usually use the game primarily through Steam so I don't have to handle updates myself, but I still can always go download the latest DRM-free version whenever I want.

  9. Re: For once... by donscarletti · · Score: 2

    Honestly, I'd give up refunds if I could pay US prices for games. I'm a little worried that this will now give publishers a legitimate reason to charge Aussies more.

    --
    When Argumentum ad Hominem falls short, try Argumentum ad Matrem
  10. Not in the States they aren't by rsilvergun · · Score: 2

    We enshrined them (and all arbitration agreements) into the Rule of Law. Our highest court just rule the law was valid too.

    Our schools are churning out lawyers like crazy because it's cheap for the University but expensive for the Student and our ruling class took note of a potential glut of people with the means to fire off Class Action Lawsuits. So they bought themselves a nice law. I suspect they're planning to do the same in the rest of the world if they haven't already (or don't just plain own the courts like they do in Brazil...).

    --
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  11. Re:Microsoft? by Anonymous Coward · · Score: 4, Insightful

    Yes, it does. Microsoft products sold in Australia have often come with a little flyer that specifies the different protections Australian consumers are entitled to outside their usual EULA.

  12. Re:Excessive regulation by AntiSol · · Score: 3, Informative

    It has to be as described and do whatever you were led to believe it would do. The term is actually "fit for purpose".

    The other issue with valve is refusing to comply with the Australian consumer protection laws - refusing to give refunds for a nonworking product.

  13. Re:Excessive regulation by AntiSol · · Score: 2

    Further to this, the Australian laws don't automatically apply whenever you buy from somebody overseas, they only apply when the seller is targeting Australians.

    Valve are clearly targeting Australians: they charge in $AUD, and they have special cut-down versions of games specifically to comply with Australian laws.

  14. Re: After I got banned from even playing single-p by Anonymous Coward · · Score: 5, Insightful

    It had to be more than just some stupid things. Bans like than only come from abusive messages or serious threats. So as a TF2 player, I'm glad you and your little shit of a nephew got banned.

  15. Re: After I got banned from even playing single-pl by Saithe · · Score: 5, Insightful

    You let him play on your account, therefore you took responsibility for his actions. Don't let other people use your account, that's reckless and stupid.

  16. Re:Excessive regulation by Pseudonym · · Score: 2

    If you drink an entire can of soda, can you return the empty can?

    In South Australia, you can. You only get 10c back for the aluminium.

    The answer to your question is "no", not for any reason. However, under Australian consumer law, there is no statutory limit on how long after purchase you can seek a remedy (e.g. repair, replace, refund) if it is not of acceptable quality. The only limit is reasonableness, and that depends on the product.

    For example, if you buy a new car, and the manufacturer decides to stop making spare parts 15 years later (even if the initial warranty has expired), you may be entitled to a remedy, because cars are supposed to last longer than that.

    --
    sub f{($f)=@_;print"$f(q{$f});";}f(q{sub f{($f)=@_;print"$f(q{$f});";}f});
  17. Re:Excessive regulation by Gadget_Guy · · Score: 2

    they charge in $AUD

    No, they charge in US$.

  18. Worst arguments put for by Valve ever. by thegarbz · · Score: 5, Insightful

    I like the way Valve had argued that they weren't doing business in Australia and as such didn't need to comply because all they did was provide an online portal.

    An online portal that accepts Australian dollars.
    An online portal that will restrict titles for Australia by geolocation.
    An online portal that WILL SEND YOU A CUSTOM VERSION OF A GAME FOR AUSTRALIA to meet Australian content requirements (looking at you Left4Dead 2) that was only released in Australia initially.

    You can't argue that you're not doing business in Australia while at the same time creating (not even releasing but actually creating) specific content to comply directly with local requirements.

    1. Re:Worst arguments put for by Valve ever. by Anonymous Coward · · Score: 3, Interesting

      Just wait until the EU comes after them. EU law states all software can be resold, including digital only. Strange that Valve, Apple, Google, Microsoft and Sony still won't offer a single method for doing so, therefore breaking the law as there is no mechanism to bypass their DRM. Seeing as these massive global tax dodging corporations are the gatekeepers for the keys, and no one else can transfer them, they cannot deny they are not preventing private sales.

    2. Re:Worst arguments put for by Valve ever. by Cimexus · · Score: 2

      The decision: https://www.documentcloud.org/...

      The judge deemed them to be doing business in Australia because:

      A) Valve had CDN's in Australia, a fair number of them
      B) Valve allowed Australian customers to access support channels
      C) Steam had 2.2 Million Australian Users
      D) Valve knew the users were in Australia
      E) Steam prices games differently in Australia, or sometimes doesn't make them available at all
      F) Valve pays for it's Australian servers from an Australian bank account

  19. Re:Excessive regulation by Sique · · Score: 2

    The retailer is the only one the consumer has a contract with. It's the retailer who gets the consumer's money. So the retailer is the only one the consumer can hold responsible for fulfilling the contract or taking back the merchandise.

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    .sig: Sique *sigh*
  20. Re:Excessive regulation by Sique · · Score: 2
    Actually, the manufacturer never contacted you, never had any dealings with you. It was the retailer, in whose shop you saw the item, with whom you talked about the fitness for your purpose and whose Terms of Service you agreed to. From your point of view, it's completely irrelevant for the trade at hand, who in the end made the item. It's still the retailer who sold it to you, and who was the last owner of the item.

    If you buy a batch of foul eggs, would you try to figure out what farm they originally came from, or would you just return them to the super market you picked them up, showing the receipt for the proof of sale? Why would that be any different for any technical items?

    --
    .sig: Sique *sigh*
  21. Digital game refunds - surprisingly complex by RogueyWon · · Score: 2, Interesting

    Looking at the other comments on this, I see some pretty polarised views; either "corporations are evil, let me get a refund on anything I want whenever I want it" or "regulation is evil, let companies do what they want". I think both of those are missing the point somewhat.

    The area of refunds for downloadable game purchases is one that a lot of effort has gone into over the last few years and nobody has yet quite found a solution that seems to work fairly for both the public and developers.

    Actually, it needs to be acknowledged that things have moved on a long way from a couple of years ago. You can actually routinely get refunds now from the main online PC game stores, provided you meet specific conditions. What's not clear is whether this is down to the threat of governmental action (the EU had been making loud noises) or market forces. In particular, when EA startled everybody by announcing what was actually a fairly ambitious refund policy for Origin, it forced competitors like Steam to up their game and follow suit.

    Steam's current policy is that, outside of exceptional circumstances, you can get a refund without question on a game which has been purchased within the last two weeks (or which has been released within the last two weeks if you pre-ordered) and which you have played for less than two hours. That falls short of the statutory provisions for refunds that apply in many jurisdictions, but it's nevertheless a useful protection if you purchase a game which doesn't work on your PC, is hopelessly bug-riddled or is fundamentally not-as-advertised.

    But this system is causing problems of its own. In particular, a lot of small-scale indie developers, whose games only sell for a couple of dollars but whose play-time is less than two hours, are finding that people are playing their games to completion in less than two hours and then requesting refunds, despite having, in essenence, fully consumed the product. Guess what - customers can be greedy, exploitive morons too.

    Now, you might argue - and indeed I would - that Steam would be a better place if it closed the door to a lot of these small-scale indie developers, or at least increased the barriers to entry. But encouraging them onto the platform and then shafting them through the refund policy benefits nobody.

    I think part of the problem here is that for all of their many benefits, Valve remain resolutely awful at direct customer support and, indeed, seem to have no interest in resourcing it properly. Turn-around time for support requests, including non-standard refund reqursts, are abyssmal (and said requests often just drop into a black-hole). This means that when things go wrong either for a customer or a developer, unless you manage to get a twitter-storm on-side, it can be very hard to escalate a problem. Dealing with that and becoming better at processing those non-standard refunds (for instance, when a previously-working game is broken by a patch), might help with a lot of Valve's current problems. But that won't be cheap or easy for the company to implement.

  22. Re:Microsoft? by thegarbz · · Score: 2

    Yes. Microsoft has been taken to town by the ACCC over and over again about their return and warranty policies.

    I remember years ago ACCC action in Australia was the reason why warranties were extended to cover red-ringing XBox360s. The Australian "Fit for service" and "expected performance" clauses were read in a way that implied a console should last at least until the next model is released and their short warranty period was therefore invalid for what was clearly a manufacturing flaw.

  23. Time for some simple regulation in the industry? by Anonymous+Brave+Guy · · Score: 3, Interesting

    If you own a bunch of Steam games, it might not be worth it since they'll ban you from playing the other games you paid for.

    This is why one of the consumer protection laws we really need in 2016 but don't currently have in most jurisdictions is that businesses providing this kind of sales/distribution service have to treat each transaction independently.

    It is clearly unfair for Valve (or your e-book seller, or a service providing movie or music downloads, or...) to attack a customer by retrospectively undoing other transactions or crippling other products involved in them just because one transaction was disputed or didn't work out properly in some way. If I go to a supermarket to complain because the "fresh" food they'd sold me with a use-by date some time next week had gone bad the day after I bought it, they don't get to refund me for that bad food but also make everything else I ever bought from them disappear from my kitchen. Tech firms doing the equivalent are just exploiting an imbalance of power and a controlling position in their market, not to mention abusing the kind of DRM schemes that allow that sort of control in the first place and the laws underpinning those schemes.

    There are good reasons we regulate monopolies in other business contexts. We also regulate services in some important industries even though they aren't monopolies, because competition hasn't proved sufficient to keep the market balanced. As far as I can see, almost exactly the same arguments apply to a lot of modern on-line services today.

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  24. let me guess by Hognoxious · · Score: 2

    Valve has contested ACCC's arguments on a number of grounds.

    1) We're American!
    2) What? That's like communism!
    3) But it's on the internet!

    --
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  25. Re: After I got banned from even playing single-p by thegarbz · · Score: 2

    Yep. If someone comes to me and complains that they lost their license due to speeding the first reaction is not that they were actually innocent and it's a big misunderstanding.

    Likewise here knowing a bit of history the number of cases where people were wrongfully banned from Steam and the ban wasn't quickly resolved is almost nothing, so the smart money is on guilty until proven innocent.