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ARTICLE · 06 JUNE 2016

Australian Consumer Law trumps Choice of Law clause

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Although the agreement tried to substitute Washington State law, the ACL applied to the supply under the contract.

AustraliaLitigation, Mediation & Arbitration
Edei Ledet
Edei Ledet
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In March 2016, the Federal Court found that the refund policy of American on-line gaming company Valve Corporation (Valve) (incorporated in Washington State, having no Australian office or presence) violated the Australian Consumer Law (ACL). Valve's website stated (in all caps) "ALL STEAM FEES ARE PAYABLE IN ADVANCE AND ARE NOT REFUNDABLE IN WHOLE OR IN PART," which the court found to be (i) misleading and deceptive (in contravention of s 18(a) of the ACL) and (ii) comprised false or misleading representations about the existence or effect of the consumer guarantees (in contravention of s 29(1)(m) of the ACL).

In Australian Competition and Consumer Commission v Valve Corporation (No. 3) [2016] FCA 196, the court accepted that:

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