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Valve removes arbitration from its Steam agreements — here’s what that means for you (www.polygon.com)

submitted 1 month ago by deathbird@mander.xyz to c/technology@lemmy.ml

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[–] mrbn@lemmy.ca 23 points 1 month ago (1 children)

So why would Valve do this? It may be a response to several law firms’ attempt to file “mass arbitrations,” wherein “hundreds or thousands of consumers bringing individual arbitration claims against the same company at the same time and over the same issue,” according to ClassAction.org. It’s essentially a loophole for class action waivers and arbitration clauses, though it still won’t end up in court.

Hit em right in the pocket book.

[–] ReversalHatchery@beehaw.org 3 points 1 month ago* (last edited 1 month ago)

Several law firms have pursued this option, one of which was sued by Valve for allegedly attempting to “extort” the company with a threat of mass arbitration with more than 50,000 people. (This lawsuit was dismissed in August without prejudice, meaning Valve could re-file.)

The idea is that the sheer number of arbitration cases would force Valve to settle with all of them with the same resolution, instead of arbitrating them all individually. Arbitration is usually less expensive than litigation, but on this mass scale, it can easily become overwhelming for the company the disputes are with. “In states like California where businesses must pay most of the arbitration fees in a consumer claim, the business would be required to pay a filing fee for each individual claimant,” Steinberg said. “With fees of approximately $1,500 per claim, a claim with thousands of individuals could cost millions in filing fees.”