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However they do not just terminate accounts for the hell of it. It take some serious violations before it gets to that point. Valve has a lot of other restrictions that they would use before doing so.
Keep in mind this is not something exclusive to Steam, all platforms can and have terminated accounts.
But game subscriptions on Steam are basically worthless, that was always the case. You don't exactly own them, Valve made it clear. And ideally you shouldn't put money for games you won't be able to play even if it's on sale, because like, what purpose do they serve besides maybe to inflate one's ego because big numbers good.
You really need to be doing something illegal or harmful to lose your account. If Valve believes you're using the account to launder money, fraud, scam other users, etc, they would most likely take more extreme measures up to and including deleting the account. That would cause you to lose access to everything and anything on the account.
Chargebacks would result in purchase limitations.
Spamming Support can earn you a ban from opening Support tickets.
Etc. Etc. Etc.
Just be a decent normal human and there shouldn't be any worry over the status of your account. I've been myself for over 20 years on Steam and aside from an occasional, and deserved, temporary forum ban, I'm still here with all my games.
This bit alone says how much they're unwilling to hand out total bans like OP described, to most services chargeback is like you handing over divorce papers to them.
Errrrr.....im in danger.
https://help.steampowered.com/en/faqs/view/4F62-35F9-F395-5C23
He spent three years appealing, while harassing forum users, and making threats against both forum user's lives and steam support's lives.
Support said enough is enough, and locked the entire account down. The guy said he was going to meet with officials about possible legal methods of addressing it, but nothing had been heard since.
You cannot give your account to anyone, it is explicitly forbidden in the TOS
I'll be dead by then. How would I know?
But you're giving me some new questions. What would steam do if one hundred years has pass? Would steam shut the account down? What if I was alive after 100 years? What if I was in cryostasis?
It depends on your definition of ban, but yes, Valve have removed full access to accounts as a punishment in the past. For example, when Borderlands released a bunch of people made a very public display of using VPNs to access the game early. Valve disabled their accounts for about a week to make an example of them. People who were detected as using VPNs to buy out of region would also get their accounts fully disabled -- permanently. Although, if they then pleaded with Steam support in a polite manner, they could get their accounts back.
Today, the severest punishment that most people can expect is to have the majority of account features removed. Meaning you can only play single player games and non-VAC protected games on the account. Buying new games, registering cd keys, using the marketplace, etc., all of that is disabled.
These days, you'd have to be a real toxic piece of crud (or do something that would likely land you in prison, anyway) to get an account fully disabled to the point of not even being able to log in permanently.
Contrary to belief, Valve are not monsters. They aren't going to ban a deceased loved one's account simply because a relative is now using it.
I'm a gamer. My account is my highest priority. And gamers in general aren't exactly known for being normal and decent.