Paul, founder of TopDogStudios decided to e-mail yugalabs and ask them for a refund on his NFT, which he believe is his statutory right under UK law.
Porsche NFT Case
It all starts with this checkbox: "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 withdrawl".
This has been very carefully worded by a legal team. But what does it mean?
Porsche explain to us exactly what this means in black-and-white within the linked "Right to Withdrawal" document.
The most pertinent statement is "If you withdraw from this contract [within 14 days], We shall reimburse to you all payments received from you".
Porsche are giving you the option to RETURN YOUR NFT within a 14 day period of minting in exchange for a FULL REFUND.
It doesn't matter if the floor price is ZERO. You have the right for a full refund.
In the UK, EU, and other countries, laws exist to provide consumers with a 14 day cancellation period when buying goods or services online; known as distance selling regulations.
This also includes digital goods & downloads, i.e., books, in-game purchases, and potentially NFTs.
I say potentially because there has been no legal precedent set for NFTs yet.
But many experts believe NFTs ARE covered under this legislation—they are digital goods; "If they can be purchased by UK consumers, the Court will look to give full effect to consumer protection laws."
Porsche's legal team clearly saw this as a risk, hence requiring you to opt out of your right of withdrawl before you mint.
And because you opted-out that means you CAN'T refund your Porsche NFT.
The UK and EU are very consumer friendly. If the seller does not inform you of your rights (your right to cancel) then this period is automatically extended to 12 months.
It's the law and a statutory right of consumers. And if the rules aren't followed then sellers could be made to "pay compensation or be given an unlimited fine or a prison sentence."
But it will be hard to argue and it will have to work its way through the Courts first.
Who would be first to try?
Source: Paul, Founder of TopDogStudios