Can NFT be refunded without reason within 14 days? Porsche 'accidentally warned investors'

This article comes fromdecrypt, original author: Sander Lutz

Odaily Translator |

Odaily Translator |

If you ask which NFT projects have attracted the most attention from the encryption community recently, Porsche "PORSCHΞ 911" is definitely one of them. According to NFTGo.io data, in just 5 days since its launch, the market value of the NFT series has reached 7.49 million US dollars, and the transaction volume is close to 6 million US dollars.

However, the project was once criticized after its release, and it was believed that the casting price of 0.911 ETH per coin was too expensive and inconsistent with the spirit of Web3. Porsche then posted on social media that in view of the holders' opinions, Porsche NFT will reduce the supply and stop casting on January 25 in order to continue to create the best experience for the exclusive community. However, one wave after another, a mandatory checkbox in the "PORSCHΞ 911" casting process (pictured below) sparked another controversy. In fact, if the user ticked the box, It is possible to lose part of the equity.

Wait, what on earth does this mean? !

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Can NFT consumers apply for a 14-day no-reason refund?

If you want to mint and become the owner of a Porsche NFT, you must agree to the terms of service and waive your so-called "right to withdraw". While most crypto community users have probably never heard of such a right, it is clearly important enough for a German automaker like Porsche. In the link to the document associated with the "right of withdrawal", Porsche explains exactly what this means in bold black and white, stating: "If you withdraw from this contract within 14 days, Porsche will refund to you all payment".You read that right,Porsche offers the option to exchange for a full refund within 14 days of the NFT being minted, it doesn't matter if the floor price is zero, or if the NFT item exists, as you are entitled to a full refund.

But the question is, why is only Porsche doing this? Why have I never seen similar reminders when other NFT projects were minted?

In fact, in the UK, as well as other EU countries, the law stipulates that consumers have a 14-day right to cancel the transaction when purchasing goods or services online. This legal provision is called the "distance selling regulation", which also includes digital goods and Downloads, i.e. books, in-game purchases, and NFTs. For merchants (such as Porsche), it is not impossible if they do not want to be bound by this regulation, but the premise is to inform customers.

The problem is that Porsche's doing so will cause the crypto community to pay attention to the "right of withdrawal" and investigate whether other NFT companies are also forcing their customers to waive their refund rights like Porsche. What's more, under EU and UK law, if a company fails to inform customers about their right of withdrawal, instead of just two weeks to get a full refund, those customers have a full year to lodge a complaint.

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Will the “Right of Withdrawal” Affect the Broader NFT Market?

Judging from past transaction records, the NFT series "Bored Ape" Bored Ape Yacht Club led by Yuga Labs and the metaverse game Otherside virtual plot "Otherdeed" may not have informed customers that they have the right to a 14-day refund window. For example, in Yuga Labs' Otherdeeds terms of contract there is no mention of a right of withdrawal under EU or UK law.

Now, some Yuga Labs customers are trying to use this right to request a refund for the NFT purchased last year. For example, Paul Price from London has asked the company to return the Otherdeed he purchased in May last year, but the request was rejected by Yuga Labs. , as they claim that Otherdeed's deal slips do not come with any guarantees or money-back rights. However, in the UK, if an NFT company like Yuga Labs is found to have violated the country’s distance selling regulations and continues to refuse to refund customers, it may be fined a severe fine of “unlimited amount” and may even be pursued criminally.

The initial casting price of the virtual land "Otherdeed" of Yuga Labs metaverse game Otherside was as high as 305 APE, which is about 5,800 US dollars. However, according to the current secondary market OpenSea data, the floor price of this NFT series is only 1.57 ETH. That's about $2,469, down nearly 60%.

Paul Price said he had communicated the matter with a lawyer and referred the matter to the Yuga Labs corporate legal department, which has so far declined to comment on the matter.

John Salmon, a digital asset lawyer in London, said: "Many encryption companies clearly do not understand the relevant regulations in Europe and the United Kingdom, and they are still hyping their NFT projects." John was responsible for drafting cryptocurrency policies and consulted European regulators on related issues , he believes that American companies often do not consider the legal rules of other markets, "This is a common problem in American encryption companies, but the United States cannot represent the whole world. There is a world outside the United States, isn't there?"