This morning the Australian Competition and Consumer Commission announced that it would be suing Valve over its refund policy, as it allegedly goes against Australian consumer law. According to Doug Lombardi of Valve, it plans to co-operate fully.
"We are making every effort to cooperate with the Australian officials on this matter," said Doug Lombardi, "while continuing to provide Steam services to our customers across the world, including Australian gamers."
Currently the refund policy at Valve is as follows.
As with most software products, unless required by local law, we do not offer refunds or exchanges on games, DLC or in-game items purchased on our website or through the Steam Client. Please review Section 3 of the Steam Subscriber Agreement for more information.
The section in bold is perhaps the most interesting, since local law does state that refunds are required if the product is faulty.
More news as we get it.