User Finds New Loophole In EU Law Suggesting That NFTs Could Be Refunded!
User Finds New Loophole In EU Law Suggesting That NFTs Could Be Refunded!
Refund Law
Recently, Twitter user @darkp0rt posted a tweet talking about a loophole that he had found in the mint page of the Porsche NFTs which he thinks could “change the entire game” of the NFT world.
@darkp0rt, who goes by Paul, explains that Porsche’s terms of agreements in minting their NFTs causes holders to “lose the right to withdrawals.” He later explains in the thread that this references a law that the EU and UK have that help protect the consumers’ rights to have a 14 day cancellation and refund period.
It all starts with this checkbox: "I agree to the immediate provision of the contractual service (i.e., receiving the NFT) and I have been informed that I hereby lose the right of withdrawl".
This has been very carefully worded by a legal team. But what does it mean? pic.twitter.com/iHDae5vHdn
— Paul | Top Dog Studios (@darkp0rt) January 25, 2023
Related: Adidas Forms Web3 Focused Team, Three Stripes Studio
“Many experts believe NFTs ARE covered under this legislation—they are digital goods; “If they can be purchased by UK consumers, the Court will look to give full effect to consumer protection laws,” the Twitter user wrote.
“Porsche’s legal team clearly saw this as a risk, hence requiring you to opt out of your right of withdrawal before you mint. And because you opted-out that means you CAN’T refund your @eth_porshe NFT.“
Why This Matters
This revelation is what many consider to be a breakthrough in the NFT world, as this could mean that many NFT collections could be forced to allow holders of refunds.
“‘But Paul, there’s no way Yuga or X will offer refunds’. It’s the law and a statutory right of consumers. And if the rules aren’t followed then sellers could be made to ‘pay compensation or be given an unlimited fine or a prison sentence.'” @darkp0rt wrote. “But I do agree that it will be hard to argue and it will have to work its way through the Courts first.”
Paul goes on to use Yuga Labs’ Otherside NFTs as an example, attempting to email the team for a refund to see how legitimate the law would work in this setting.
Although Yuga Labs has rejected his request for a refund, citing this information had been relayed in their Terms Of Service, Paul has since requested to talk to Yuga’s legal team, who will hopefully be able to better convey whether the EU’s 14-day refund law still applies in this case.
I'll update this thread if it progresses to anywhere interesting.
As expected, first-level support said "no" stating that there are no refunds under their Terms of Service.
I asked to escalate to their legal team, which they did. pic.twitter.com/3UzMhxMWJ0
— Paul | Top Dog Studios (@darkp0rt) January 26, 2023
Related: Apple, Netflix, & Yuga Labs Among Some Of FTX’s Named Creditors!
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