As far as I understand it, MS can get around local laws due to the MS points system. Since your "buying" the MS points, thats in effect the "product". Anything you then get with those points is not a legaly a "purchase" and its not with a recognised "currency" so you dont have legal protection under sales laws.
Correct me if Im wrong though, Im not aware of any laws that specifically cover non-currency transactions.
Dutch law would cover that, as far as I know.
I dont think it would regard a product purchased as different from a product purchased via a different curreny, allowing for exhange rate.
I believe, but am no lawyer, that under the laws that govern purchases in my nation the purchase of Microsoft Points would be seen as one currency changing for another and it would, I believe, view the product finally purchased held by our trading laws.
These are mainly there to protect consumers but do go some way into protecting merchants as well therefore I previously said that a refund is often not due.
When it comes to downloadable content with a caveat emptor remark that says 'no refunds', I believe the chances of a refund are slim to none.
Nevertheless.
It still irks me when companies print such a blanket statement. They cant possibly
know. They dont make the law everywhere.