Games

Valve News & Update: Gaming Company Facing $3M Fine for Breaking Australian Consumer Law

Valve News & Update: Gaming Company Facing $3M Fine for Breaking Australian Consumer Law

Valve, the American video game developer and distribution company, is in trouble after the Australian Competition and Consumer Commission (ACCC) slapped it with $3M fine for violating laws regarding refunds. It was revealed that from 2011-2014, the gaming firm failed to set-up an advertised refund policy on Steam.

The ACCC had directed Valve to pay the fine since Steam, its outlet store for games, lacks the said policy which is strictly required. Although an appeal is being done, the order may be final as the company already lost the case.

For its defense, Valve reasoned that they are an American company so they cannot be required to conform to such rule. They said that there is no need for them implement the rule because Valve is a foreign firm after all.

In addition to the fine, the ACCC was also pushing for Valve to launch a 1-800 number so that Australian customers can easily make their request for refunds. But later, the commission yielded to the argument that this is unfeasible for gaming company's side.

However, the Australian courts is firm with imposing the $3M fine which Valve tries to rebuff and asserted that a $250,000 penalty is the more appropriate amount. The gaming company explains that Valve's conduct was intended to mislead or deceive consumers so the penalty should not be that harsh.

In response, the Escapist Magazine quoted presiding Judge Edleman as saying, "Your proposed penalty of $250,000 isn't even the price of doing business, it's next to nothing is it?" In any case, the ACCC filed this case against Valve in 2014. The commission points out that the company is not abiding by the Australian Consumer Law, specifically the regulations on refund, repair and replacement of goods.

Now, the courts ruled in favor of ACCC and since there is a dispute with regards to how much fine it should be, the court must decide on the exact amount to be paid as penalty for the offense. Judge Edelman is scheduled to hand down the final ruling on Valve penalties in either December or January 2017.

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