Digital Games – Can I get a Refund?

Table of Contents

Share at:

It’s Friday night. It’s been a long week at work, with so many projects and tasks that you feel like your head’s going to explode if you don’t take a break. You boot up your PC and look online for something to do. “Oooh, I’ve been waiting for this game for months!”, you exclaim to yourself as you immediately purchase and download the game.

The download finishes, you kick back, click play, and start immersing yourself into the game world that will unfold right before your eyes. What better way to enjoy a casual Friday night than to enjoy some casual escapism?

Then it strikes – glitches, bugs, you name it, the game is broken. You sigh. A sigh tinged with the broken expectations of a several month wait. You look online at the refund policy. It’s clear what you are getting back – nothing. You aren’t entitled to a refund in any circumstances.

This is what happened for many customers who purchased digital video games from Valve Corporation, on the digital game distribution client “Steam”. But is this really the case? The court decision of the Australian Competition and Consumer Commission v Valve Corporation (No 3) recently had a look at the “no refund” policy of Valve, and questioned whether or not it was legal for Valve to have such a policy.

Full Steam Ahead – The Court Case

The Australian Competition and Consumer Commission (ACCC), as the government watchdog for competition and consumer law in Australia, submitted a claim against Valve in relation to the aforementioned refund policy. Valve submitted the following two defences:

  • The video games downloaded by gamers through the service did not amount to a “supply of goods”.
  • Valve did not conduct business in Australia, and therefore Australian Consumer Law did not apply to the company’s business.

As such, Valve argued that they were not required to comply with Australian Consumer Law requirements, and could refuse refund requests from any customers.

The judge rejected both of Valve’s defences, putting forward that:

  • The sale of computer software that could be played without an internet connection constituted a “supply of goods”.
  • Valve was indeed conducting business in Australia, with $1.2 million worth of property, mainly servers, in Australia, 2.2 million subscriber accounts in Australia, and payments made to an Australian bank account of an Australian company.

Overall, this case determined that Australian Consumer Law does indeed apply to foreign corporations operating in Australia, and that Valve was in breach of consumer law by refusing to provide refunds for customers, regardless of the circumstances.

Get on demand legal advice for one low monthly fee.

Sign up to our Legal Advice Plan and access professional legal advice whenever you need it.

What does this mean?

Rejoice, gamers! This case means that as long as a corporation does have significant business and representation in Australia, we are entitled to a refund under Australian Consumer Law, depending on the circumstances of the good or service supplied. You know the Batman – The Telltale Series game you just bought last night? The really buggy one? Yes, you’re most likely entitled to a refund for that game, as long as your request is a reasonable one.

Overall, this case represents the global scope of the ACL in protecting Australian consumer rights, and has been incredibly beneficial for consumers all over Australia. Keep this in mind if you need to submit a refund or warranty request for any good or service provided to you!

Find the perfect lawyer to help your business today!

Get a fixed-fee quote from Australia's largest lawyer marketplace.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Can an Offer of Employment be Withdrawn?

Can an offer of employment be withdrawn? Read this article to find out when an employer can and can’t withdraw an offer of employment.

Terms of Service vs Terms & Conditions: What’s Different?

Terms Of Service and Terms and Conditions are an integral part of the online business world, and are a legal requirement for websites. Read about them here.

Memorandum Of Understanding vs Letter Of Intent Differences

Memorandums of understanding and letters of intent differ largely in regards to their legality. Read our article to find out which one you need.

Do I Have to Pay Stamp Duty on a Trust Deed? (2026 Update)

To set up a trust you'll need to lodge a trust deed. Depending on your state or territory, you may need to pay stamp duty on it.

How Much Tax Should I Pay on My ABN? (2026 Update)

If you have an ABN as a sole trader, you will have to pay tax on your individual income. Find out the rules.

Is Driving Without Shoes Illegal in Australia?

Although driving without shoes may be the more comfortable option, it's something you may want to think twice about. Learn what the rules are here.