Australian Competition and Consumer Commission v Valve Corporation (No 7)

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Valve Corporation, alleging breaches of the Australian Consumer Law (ACL) in relation to the sale of video games. The Court was required to consider various relief orders, including pecuniary penalties, injunctions, and compliance program orders. The ACCC sought a penalty of $3 million, while Valve argued for a penalty of $250,000, acknowledging that this amount was insufficient in the circumstances. The court found that the appropriate penalty was $3 million, taking into account the seriousness of the breaches and Valve's conduct.

The court considered the factors relevant to determining the appropriate penalty, including the gravity of the contravention, the culpability of Valve, and the need for deterrence and punishment. The court found that Valve's conduct was deliberate and involved significant harm to Australian consumers. Valve's representations to consumers that they had no entitlement to a refund for video games purchased from Valve and downloaded from the Steam website were misleading and in contravention of the ACL. The court also found that Valve had represented that it had excluded or modified statutory guarantees or warranties of acceptable quality, which was also misleading and in contravention of the ACL.

The court found that Valve's conduct warranted a substantial penalty to ensure deterrence and punishment. The court considered the penalties imposed in comparable cases and found that the penalty in this case was commensurate with the gravity of Valve's conduct. The court also considered Valve's financial position and found that the penalty would not have a significant impact on Valve's operations. The court ordered Valve to pay a pecuniary penalty of $3 million and to implement a compliance program to minimise the risk of future contraventions of the ACL.

The court also made declarations of contravention and restrained Valve from making certain representations to Australian consumers in relation to the supply of digitally downloaded video games. The court ordered Valve to publish a notice on its website informing Australian consumers of their rights under the ACL. The court found that these orders were appropriate to vindicate the ACCC's claim, inform consumers of Valve's contravening conduct, and deter other corporations from contravening the ACL. The court also found that the orders were necessary to ensure that Valve complied with its obligations under the ACL and to promote consumer confidence in the digital gaming market.