> This sort of thing wasn't really possible before the internet age. We need new laws to deal with it.

Yes, it was and it always has been[1]

>I disagree. The issue is these huge platforms can arbitrarily ban people and consumers have no recourse

This is par for course with every single EULA ever. I will say in the case of Steam it's hard pressed to find your account completely disabled and unable to play the games you rightfully purchased. I think the worst-case scenario is that you will be banned from engaging with the steam online community which restricts your ability to play with other users on steam

1. https://en.wikipedia.org/wiki/Redlining

Redlining is not really the same as what we're talking about (but should also be illegal).