Prior June 2012 Sony (NYSE:SNE) PS Vita purchases eligible for refund: Federal Trade Commission

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By Ross Schwartz on November 27, 2014 Technology & Software

In what has become another case of misinformation and misleading claims given to consumers by a big corporation, Sony (NYSE:SNE) has finally settled with the Federal Trade Commission on a refund, which it will offer to all PS Vita purchases made before June 1, 2012.

The case was settled on Tuesday after FTC announced a deal had been reached between it and Sony (NYSE:SNE) Computer Entertainment America, the company responsible for the distribution of all PlayStation gaming technology in the United States, regarding the nature of its advertising claims, which FTC said were “misleading”.

The misleading information stems under the “game-changing” technology in the PS Vita that has been heavily advertised throughout the early part of 2012. Sony (NYSE:SNE) ended up selling over 4 million PS Vita consoles at the price tag of $250 each.

FTC had two major issues with the PlayStation Vita ads. Firstly, the “remote play” technology, which the advert claimed allowed players to play on their PS3 console from anywhere in the world, using a Wi-Fi connection. Secondly, the “cross-platform compatibility”, which the advert claimed allowed players to pause their games on the PS3, and then resume it on the PS Vita at the same point.

According to the FTC, both these claims were not true in their entirety. Collecting data from all the complaints they had received, the FTC declared the PS Vita’s “remote play” and “cross-platform compatibility” features were available for only a small number of games. Furthermore, the “cross-platform” feature, which allows players to switch consoles while playing a game without a hitch, is different for many games, having full integration with some and minimal integration with others.

Sony (NYSE:SNE) has not released a statement in this regard as yet. The settlement decided by the FTC entitles all buyers of the PS Vita, who purchased the console before 1^st June 2012, to a refund amounting to $25 in cash/credit, or $50 in voucher for merchandise available at Sony (NYSE:SNE). All those customers who are entitled to receive the refund/voucher will receive it through email sent by Sony (NYSE:SNE).

The move comes right before the holiday season begins all over the world, which is exactly why “companies need to be reminded that if they make product promises to consumers, they must deliver on those pledges”, said Jessica Rich, FTC’s Head of Consumer Protection Bureau.

Sony (NYSE:SNE) is not the only company under fire in this case. The advertising agency responsible for the PS Vita campaign, Deutsch LA, has also received action by the FTC in this case. The company was held on two grounds. Firstly, it should have known the information it was presenting the advertisements was misleading. Secondly, FTC alleged Deutsch LA asked its employees to post tweets of a positive nature on Twitter about the PS Vita to generate a positive vibe of the product, without disclosing their association with the firm.

A settlement agreement has also been reached between FTC and Deutsch LA, although no details of said settlement have been released as yet.