Valve is trying to resolve the issue by cooperating with the Australian officials.
American Videogame streaming service provider Valve has been slapped with a lawsuit by the Australian Competition and Consumer Commission (ACCC) due to nonpayment of refund on games that were purchased by Australian consumers.
The commission stated that the gaming company was misleading consumers because consumers in the subcontinent are not entitled to refund for any games sold via its digital distribution platform.
Valve is also accused of modifying the statutory guarantees that goods sold should be of acceptable quality, and it will not replace or repair games if a consumer has not contacted Valve highlighting the problem.
ACCC Chairman Rod Sims said: "The Australian Consumer Law applies to any business providing goods or services within Australia.
"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."
Back in 2013 the company was sued by a German consumer group because it did not allow users to re-sell the purchased game, but the court ruled in favour of Valve.
Reports suggest that Valve is cooperating with the Australian authorities, and there will not be any hindrance to the streaming service it provides in the country.