Steam Blocks Class Action Lawsuits with ToS Change

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SECTION 12 CONTAINS A BINDING ARBITRATION AGREEMENT AND CLASS ACTION WAIVER. IT AFFECTS YOUR LEGAL RIGHTS. PLEASE READ IT. IF YOU LIVE OUTSIDE OF THE UNITED STATES, SOME OR ALL OF SECTION 12 MIGHT NOT APPLY TO YOU.

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If you're like most people, when Steam started up this morning you noticed there was an extra pop-up prompting you to click a button that says "I agree" a few times, and you did this without reading much into what you were consenting to. Turns out you don't actually "own" your left hand anymore. Oh, well.

Actually, it was an updated Steam Subscriber Agreement altering the legal options available to customers. First, Steam customers may no longer bring class action claims against the service, mirroring similar moves by large distribution and publishing companies, including Sony and Microsoft.

"We considered this change very carefully. It's clear to us that in some situations, class actions have real benefits to customers," Valve explains. "In far too many cases however, class actions don't provide any real benefit to users and instead impose unnecessary expense and delay, and are often designed to benefit the class action lawyers who craft and litigate these claims."

Individual claims will still be allowed, though Valve has now instituted a required process that channels these claims to arbitration or small claims court. Valve will reimburse the cost of arbitration under a certain amount, provided the arbitrator deems the claim isn't frivolous nor the expenses unreasonable.

Valve is also opening an office in Luxembourg "to better serve our EU customers and partners," who will sign an EU-specific SSA.

Hey, at least you still own your left hand.

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On August 02 2012 08:38 Rybka wrote:
My theory, for what it's worth:

One only need look at the at the almost commonplace attacks against credit card databases, and the recent attack on the Sony/Playstation Network online service, as proof that breaches are a real threat.

As DotA 2 ramps up in popularity, the amount of personal data they hold will grow. This personal data includes credit card information. Yesterday, I saw 65,000+ people online for DotA2, and it will grow from there. People will go after their database - they went after Sony. Think about it, why else would there be a class action lawsuit against Valve? It's not like they're going to release some bad software update that frags everyone's computers.

In fact, haven't they been breached once before, ie Gabe's apology letter? (Source needed ofc).

IMHO Valve is smart to head this off at the pass, but they could probably go about it a better way, such as specifying in plain language "class action lawsuits related to data theft and breaches of security even when best practices for electronic security have been followed."

Strange update though... a little extreme. Such is the world we live in, I suppose. Either way, Valve still has my trust and respect. This won't stop be from using Steam or purchasing their games and services.

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On August 02 2012 08:41 sAsImre wrote:


they'd never say that because they can't know for sure that the bold part will be true.
They don't need to get a high tiers decision to have bad security (ala Sony) but inviduals error can be enough and you don't want to be sued because one of your employees screwed up big time.

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