Over the last year, a variety of controversies in the video game industry have erupted into legal action. While publishers like Activision Blizzard being taken to court is certainly notable, the news that Nintendo has lost a court case over the eShop may take gamers by surprise. Apparently, a German court of appeal has reversed a previous decision made in the company's favor concerning Nintendo's policy regarding eShop cancellations.
This isn't the only time Nintendo has been taken to court over the Nintendo Switch recently, but this case may have a real impact on how Nintendo operates. Nintendo's approach to consumer rights in the eShop has been a subject of debate ever since the eShop launched. In Europe, one particular policy has led to legal action.
Reportedly, the lawsuit focuses on Nintendo's policy of not allowing refunds on eShop pre-orders. In September 2020, this policy was amended to allow gamers to cancel a pre-order as long as it was still more than seven days ahead of the game's release. This policy may need further revising now that work by the Federation of German Consumer Organisations (VZBV) and the Norwegian Consumer Council has led to Nintendo losing an appeal. Apparently, Nintendo has already accepted the result of the court case.
A summary of the case, translated from German, states that Nintendo offers video games for download in the eShop before the games' official release date. These downloads often include a software-comprehensive "pre-load" of the game, with the game being unlocked via update on the official launch day. Similar online purchases found in digital storefronts can usually be canceled within 14 days without giving reasons, but Nintendo opted to revoke the right of withdrawal and rely on an apparent legal exception. The lawsuit argued that as the download made available after the pre-order did not yet contain a usable game, the contract between Nintendo and buyers wasn't fulfilled.
The case was originally dismissed by the Regional Court of Frankfurt am Main, but the appeal took it to the Higher Regional Court of Frankfurt, where the consumer advocates found success. Apparently, the judges have "advised Nintendo to recognise the VZBV's claim for injunctive relief as justified" and the court has upheld the VZBV's action in its entirety in its acknowledgment judgment. Nintendo appears to have agreed to this. However, it appears that the acknowledgment judgment does not contain any grounds for decision, so the exact fallout of this video game court case is still uncertain.
Source: Nintendo Life