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Its a tricky situation, because nothing would stop people from just damaging used cards and claiming they were damaged to get free money.
Yes, it really sucks that you got a gift hat you can't use, but you lost no money. Your friend did.
Support can assist with damaged codes. Though you will need a lot of proof of purchase to begin the process
I personally would argue that even if I had damaged it, I'd done so in the proper and normal use of the item. In short, if you're expected to "damage" it in order to reveal a code, that damage shouldn't also destroy the code - if so it's a faulty product and you should be entitled to your money back.
Laws and regulations change all over the world, and I am no expert, so your mileage may vary
Good luck.
The OP has no leg to stand on with any court or authority- if anyone does, it would be the friend who just spent the money on the card that can't be redeemed.
The response would be again to go to the store it was purchased from as Steam didn't sell it to them.
The first step as I already stated is to contact the store. Losing a receipt can be easily replaced with POS systems. I've had them do it for me in the past. All that information is saved and can be looked up and re-printed.
That would be pretty illogical given the OP damaged the card. Why would anyone have legal standing, this would be like dropping a tv in the parking lot and then saying BestBuy was to blame
It's been 5 years or so since they've popped. Surely, Valve was more loyal in solving such cases back then.