Valve Faces $3 Million Fine for Violating Australian Consumer Law

By Dane Lorica, | December 27, 2016

Valve has a chance to file an appeal over the $3 million fine requested by the Australian competition regulator before Feb. 20, 2017. (YouTube)

Valve has a chance to file an appeal over the $3 million fine requested by the Australian competition regulator before Feb. 20, 2017. (YouTube)

The Australian Federal Court has ordered Valve to pay $3 million for violating the country's consumer law.

The final verdict stated that the company committed a breach of law due to the lack of a refund policy on Steam games between 2011 to 2014

According to the company's advertisement, Valve waived itself from refund obligations for Steam-acquired games. Before receiving complaints, the company created a refund policy. However, the Federal Court considered the time frame from Jan. 1, 2011 to Aug. 28, 2014 enough to consider the act as a breach of law.

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However, the Australian Consumer Law states that a refund should not be excluded nor limited in any purchase.

During the trial, Karl Quackenbush, general counsel of Valve, admitted that the company failed to ask for legal advice prior to their penetration of the Australian market.

According to Justice Edelman, the gaming giant "engaged in conduct which was misleading or deceptive or likely to mislead or deceive in contravention."

Edelman also allotted 30 days for the completion of payment. The government also requires the information to be disseminated to Australian consumers. The notice with at least a font size of 14 and with a title "IMPORTANT NOTICE ABOUT CONSUMER RIGHTS IN AUSTRALIA" should be posted 12 months from Feb. 20, 2017.

Another requirement mandated is the creation and implementation of an Australian Law Compliance Program.

After the release of the judgment, the company suggested $250,000 for the fine, but the court said that the said amount is not the real cost of having a business.

Valve has a chance to file an appeal over the $3 million fine requested by the Australian competition regulator before Feb. 20, 2017. 

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