Sony PlayStation fined $3.5 million for refusing game refunds, misleading digital buyers

It was supposed to be the day Sony launched its next games console, but the company has instead copped a $3.5 million fine for refusing refunds.

International games giant Sony has been fined $3.5 million for refusing refunds to Australian consumers who downloaded faulty PlayStation games, and for falsely claiming they did not have to return customers’ cash unless authorised by a game developer.

The massive fine, issued in the Federal Court following a lawsuit by the Australian consumer watchdog, related to complaints between October 2017 and May last year.

It is the second time the Australian Competition and Consumer Commission (ACCC) has won action for gamers this week after EB Games committed to issuing refunds to customers on Monday over a faulty game even though it initially denied them help.

Sony has been penalised for misrepresenting consumers’ rights in Australia.

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The ACCC issued the latest court action against the operators of PlayStation Network in Australia after consumers complained they had been denied refunds for faulty games and told by Sony customer service representatives that they were not eligible for a refund once they had downloaded the game or once 14 days had passed.

Sony Europe reps also told one customer it did not have to provide a refund unless the game developer authorised it, and told another that they could only issue a credit.

But ACCC chairman Rod Sims said the company short-changed these buyers and “what they told these consumers was false”.

“Consumers who buy digital products online have exactly the same rights as they would if they made the purchase at a physical store,” Mr Sims said.

“Consumer guarantee rights do not expire after a digital product has been downloaded and certainly do not disappear after 14 days or any other arbitrary date claimed by a game store or developer.”

Mr Sims said Australian Consumer Law applied to all sales to Australian consumers, regardless of where the seller was located, and refunds had to be given in cash rather than store credit.

ACCC chair Rod Sims said consumers who purchased digital goods did not give up their consumer law protections. Picture: Zak Simmonds

Sony Europe admitted liability for misleading customers in Federal Court and will also be required to pay for some of the ACCC’s legal costs.

The fine came on the same day Sony had planned to launch its latest console, the PlayStation 5, until it was postponed this week due to widespread protests in the US.

The news also comes just four days after EB Games admitted they “likely” misled customers about their refund rights in relation to the purchase of the game Fallout 76 between November 2018 and October last year.

Buyers experienced a host of problems with the game, including software bugs and server problems.

Consumers who bought the title from EB Games have until August 1 to request a refund from the retail chain.

Originally published as Sony PlayStation fined $3.5 million for refusing game refunds, misleading digital buyers