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It also allows class action lawsuits which is the equivalent of the arbitration they are putting a stop to, and would be financially more sound for everyone involved.
Yes and no, but specifically it's going to reduce costs in the long run from mass arbitrage on the part of Valve. That said, I don't know how it affects the Milberg firm's class action, let alone Zaiger's mass arbitrage campaign.
They will stay as such because they were filed under the old ToS.
And furthermore, no, if it were half as draconian as you claim not only would people be up in arms, but they'd be instantly sued.
Isn't it more likely you've read it wrong?
The little News they posted reads so too as it would benefit users which go that way more, as especially court rulings would give a clear line for others too.
But that change probably only affects people in the US either way, and not the majority of steam users.
Removing that clause and saying you need to go to court to serve Valve with a formal complaint means that the playing field is (at least in theory) now even and Valve must be prepared to argue their case as much as the plaintiff. Rescinding the class action waiver is likewise positive (and usually why arbitration clauses exist in the first place). A company walking such things back is a rare sight, especially in the US.
Arbitration clauses are a blight on consumer rights the way US corporations employ them, even if I personally think from a purely conceptual perspective they do have a time and place to be enforced. Individual consumers being held to an arbitration clause has almost never been a good option and those situations are the ones I wish the government would be more firm about dealing with.
If you want to see the frustrating effects of an arbitration clause in action just look up the LG fridge debacle from earlier this year. LG sells a faulty product that is demonstrably and consistently faulty but when customers are like "I think we deserve to sue and either get refunds or force a recall," LG pointed them to the arbitration clause they "agreed" to by opening the box. So your consumer rights don't mean anything, the company stole them from you when you decided to do business with them, which is a "great" relationship to have with people who willingly spent money on your stuff.
Thank you for actually reading and taking the time to do basic research. You are correct. This ends up being far better for consumers then the previous system. It also doesn't change much for many people as Arbitration was already not allowed in several countries, so it makes the rules more consistent as well.