Update:

In a statement provided to IGN, Valve marketing director Doug Lombardi said the company plans to work with the Australian government to resolve the matter.

“We are making every effort to cooperate with the Australian officials on this matter,” Lombardi wrote, “while continuing to provide Steam services to our customers across the world, including Australian gamers.”Original story is below.

The Australian Competition and Consumer Commission (ACCC) is suing Valve over accusations that the company made false or misleading representations under the Australian Consumer Law with its refunds policy, the government body announced today.According to the ACCC, Valve breached the Australian Consumer Law for stating that consumers were not entitled refunds and that it had “excluded, restricted or modified statutory guarantees and/or warranties that goods would be of acceptable quality.” The ACC claims that the Portal 2 developer absolved itself from obligation to repair, replace or provide a refund for a game.The Steam refund policy states that "unless required by local law," Valve does not offer refunds or exchanges on games, DLC or in-game items purchased.“The Australian Consumer Law applies to any business providing goods or services within Australia,” ACCC Chairman Rod Sims said in a prepared statement. “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.“Under the Australian Consumer Law, consumers can insist on a refund or replacement at their option if a product has a major fault,” he added. “The consumer guarantees provided under the Australian Consumer Law cannot be excluded, restricted or modified.”The first hearing for the matter, filed with the Federal Court’s Sydney Registry, is slated for October 7 2014 at the Federal Court in Sydney before Justice Jagot. The ACCC is aiming for an admission of guilt, costs, injunctions, pecuniary penalties, disclosure orders, adverse publicity orders, non-party consumer redress and a compliance program order.We've reached out to Valve for comment.

Jenna Pitcher is a freelance journalist writing for IGN. You can follow her on Twitter