Can You Get A Refund On Porsche, Yuga Or Other NFTs? It Depends – Decrypt
After Porsche released its debut NFT collection earlier this week, most breath was spent skewering the project’s tone-deaf pricing and (initially) miserable sales.
Days later, a small mandatory checkbox featured in the project’s minting process has stirred another controversy, one with further-reaching implications for the NFT community.
All would-be Porsche NFT owners were required to agree to Terms of Service that would waive a so-called right of withdrawal in order to mint their NFTs this week. While most customers had likely never heard of such a right, it was clearly important enough for the German auto manufacturer to include.
Something caught my eye on the Porsche NFT mint page that might just change the entire game for everyone.
And no one is talking about it… 👇🧵 pic.twitter.com/Vd4Mzidvhk
— Paul | Top Dog Studios (@darkp0rt) January 25, 2023
The right of withdrawal, established by an obscure 1997 European Union law, requires any person or business engaged in “distance selling”—the act of selling a product that a customer isn’t buying in person—to allow customers 14 days to return that product for a full refund. In the case of digital goods, that 14-day period can be waived, but only if customers are made aware.
It makes perfect sense why Porsche would want customers to waive that right. If the NFT collection’s floor price dipped below its initial price of .911 ETH on secondary markets (which it already did earlier this week), European buyers could turn around and demand Porsche to refund that initial cost in full. Due to that handy little checkbox, however, such an option is off the table for Porsche NFT holders.
Other NFT collections may not have dotted their i’s so scrupulously. Porsche’s navigation of withdrawal rights has led some to investigate whether other NFT companies failed to compel their customers to similarly waive refund entitlements. Crucially, according to laws in both the E.U. and the U.K., if a company fails to inform customers of their right of withdrawal, those customers don’t just have two weeks to get a full refund; they have a full year.
Yuga Labs, the $4 billion company behind dominant NFT collection Bored Ape Yacht Club and metaverse platform Otherside, may be one such company