Australia's consumer watchdog is suing US computer game distributor Valve, alleging it refused rightful refunds and misled customers about their rights.
Valve's online shop Steam, through which it sells downloadable games to Australians, refused three customers refunds for defective games, the Australian Competition and Consumer Commission (ACCC) alleges.
Australian consumer law guarantees a refund in the event of a major product failure.
In court documents filed on Thursday, the ACCC also alleges Steam told customers that Australian consumer protections did not apply to its products.
The company also unlawfully omitted or modified a mandated consumer guarantee that its products would be of acceptable quality, the ACCC alleges.
Valve does not have offices in Australia, but ACCC chair Rod Sims says he is confident they can be successfully sued.
"Valve may be an American-based company with no physical presence in Australia, but it is carrying on business in Australia by selling to Australian consumers, who are protected by the Australian Consumer Law," Mr Sims said in a statement.
"It is a breach of the Australian consumer law for businesses to state that they do not give refunds under any circumstances.
"Consumers can insist on a refund or replacement at their option if a product has a major fault."
Valve, which is headquartered in the US state of Washington and has about 65 million Steam users globally, could not be reached for comment.
But spokesman Doug Lombardi told Fairfax Media the company was "making every effort to cooperate" with Australian officials.
A directions hearing is set for October 7 in the Federal Court in Sydney.
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