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    Home»Technology»Steam Removes Binding Arbitration Clause from Subscriber Agreement
    Technology

    Steam Removes Binding Arbitration Clause from Subscriber Agreement

    Jamie CarpenterBy Jamie CarpenterSeptember 27, 2024Updated:September 27, 2024No Comments3 Mins Read
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    Valve has significantly changed its Steam Subscriber Agreement (SSA), removing the binding arbitration clause and class-action waiver. This update marks a major shift in how disputes between the company and its users will be handled moving forward.

    Arbitration Clause Removed

    Valve announced that it has eliminated the controversial requirement that disputes be resolved through individual arbitration. This means that customers can now take legal disputes to court if necessary. Previously, the SSA required users to resolve disputes through arbitration, which limited the right to sue in court.

    In a statement posted to Steam’s blog, Valve explained, “We’ve eliminated the requirement that disputes be resolved by individual arbitration… The updated SSA now provides that any disputes are to go forward in court instead of arbitration.”

    Class Action Waiver Also Removed

    Along with removing the arbitration clause, Valve also removed the class-action waiver. This waiver previously restricted users from joining together in a class-action lawsuit against the company. Removing this provision opens the door for collective legal action in regions where the class-action waiver was enforceable.

    The change will have a limited impact on users in places like Australia, the EU, New Zealand, Quebec, and the UK, where the arbitration clause was not binding. However, in regions like the U.S., this is a significant update, giving consumers more power to challenge Steam legally if needed.

    Why the Change?

    The decision comes amidst broader discussions about the use of arbitration clauses in other industries, which have often drawn public criticism. One prominent example involved Disney, which faced reputational damage after attempting to funnel legal disputes into arbitration through its Disney+ terms and conditions.

    Valve’s decision may also reflect the high costs and time associated with arbitrating individual disputes, leading to this policy shift. As one Steam user noted, “Turns out that if you have tens or hundreds of thousands of disputes, it costs more time and money to arbitrate each dispute individually than to just litigate a class-action lawsuit.”

    A New Era for Steam Users

    While the arbitration clause removal may not directly affect some international users, it gives players in many other regions—particularly the U.S.—the freedom to take disputes to court. This change may lead to more legal actions being filed against Valve if disputes cannot be resolved through customer support channels.

    Valve continues to encourage users to contact Steam Support to resolve issues before resorting to legal measures. However, this update provides users with the court option as a last resort.

    In related news, Ubisoft announced its full return to Steam, with new releases set to launch day one on the platform. The first of these, Assassin’s Creed Shadows, will be released on 14th February next year.

    Arbitration Removal Class Action Waiver Class-Action Lawsuits Legal Disputes Steam Legal Changes Steam Subscriber Agreement Steam Update Ubisoft Return to Steam Valve Arbitration Clause Video Game Industry News
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    Jamie Carpenter

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