TopDog Studios founder Paul (@darkp0rt) is trying to set new precedents surrounding NFT refund laws, particularly by asking a refund for his Otherside NFT. As a citizen of the UK, the law states that he would be liable to use consumer rights within the boundaries of ownership. If the law passes through and Yuga Labs is to pay a refund on his Otherdeed, Paul becomes the first person to successfully get a refund on his NFT! Read on to learn more about this unique situation.
How Do People Refund NFTs?
The story starts with NFT founder Paul stumbling upon something he describes as “game-changing” while surfing the Porsche NFT Mint page. On the page, the brand specially asks users to click on two check boxes to confirm the sale. One of the boxes reads “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 withdrawal.” Upon further digging, he finds a clause within the linked “Right To Withdrawal” document.
This clause states “If you withdraw from this contract [within 14 days], We shall reimburse to you all payments received from you.” All this means is, Porsche gives its NFT customers a right to fully refund their digital assets within 14 days of purchase. This is regardless of whether the floor price doubles or goes to zero. Paul states that in the UK, EU, and other countries, a 14-day cancellation law applies when buying goods or services online. This law is called the “Distance Selling” regulations. This law extends also to digital goods & downloads. It includes books, in-game purchases, and (potentially) NFTs. Since Porsche asked users to check the boxes beforehand, they are not liable
What Does This Law Mean For Other NFTs?
Though NFTs are still a grey area within this law, many experts believe NFTs are covered under this legislation. The Top Dog Studios founder goes on to explain that this law may extend even to other NFTs. Including ones he owns such as Yuga Labs’ Otherside Deed NFT. The Otherdeed that Paul holds has a current floor price around 1.6ETH ($2,281). In accordance with this law, the seller has to inform the customers of their right to cancel orders or else risk the applicability of the same law to an extended 12-month period.
This is what the project founder aims to do. Get a refund on his Otherdeed from Yuga Labs. As he explains in his tweet storm, “t’s the law and a statutory right of consumers.” If Yuga Labs fails to refund, they may “pay compensation or be given an unlimited fine or a prison sentence.” Ofcourse, this would set a precedent unlike any we’ve ever experienced before as a web3 community. The law may see millions asking for refunds next. NFTEvening is following the story closely as it continues.