Australian court fines Sony $2.4 million for misrepresenting consumer rights

[Karlston]

Australian court fines Sony $2.4 million for misrepresenting consumer rights

Today the European branch of Japanese conglomerate Sony Interactive Entertainment was penalized $3.5 million AU - or $2.4 million US - by the Federal Court of Australia. The fine has been issued as a result of allegations made by the Australian Competition and Consumer Commission (ACCC) back in May 2019.

 

According to the case presented by the ACC last year, Sony Europe infringed the rights of Australians customers as per the Australian Consumer Law when it introduced its new terms and conditions for the PlayStation Store in September 2017. The news terms prevented customers from getting refunds on games two weeks after purchase or once they had been downloaded.

 

Four customers in specific were informed over the phone by Sony employees that they could not issue a refund unless approved by the game's developer, while a separate customer was offered PlayStation Store credit instead of a proper return of the fiscal amount charged.

 

Rod Sims, Chair of the ACC, commented on this matter:

"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. What Sony told these consumers was false and does not reflect the consumer guarantee rights afforded to Australian consumers under the Australian Consumer Law.

 

Consumers can obtain a repair, replacement or refund directly for products with a major fault from sellers and cannot simply be sent to a product developer. Refunds under the consumer guarantees must also be given in cash or money transfer if the consumer originally paid in one of those ways, unless the consumer chooses to receive store credit."

When the legal proceedings were pressed by the ACCC in May last year, Sony Europe changed its terms of service. But of course, as the damage was already done and Australian consumers were denied their rights as per the constitution, the case continued.

 

Today's court decision acknowledges the events that conspired and found fault with Sony Europe, thereby charging the company the sizable $2.4 million fine. On its part, Sony has accepted blame by agreeing to pay the penalty.

 

 

Australian court fines Sony $2.4 million for misrepresenting consumer rights

 

[lurch234]

6 hours ago, Karlston said:

When the legal proceedings were pressed by the ACCC in May last year, Sony Europe changed its terms of service. But of course, as the damage was already done and Australian consumers were denied their rights as per the constitution, the case continued.

 

Right on! You don't leave off the hook big hypocritical companies like that just because they changed their illegal "terms of service" in the face of upcoming litigation.

 

Whats are those idiots at Sony thinking anyways!? 

 

While they are actively sending DMCAs to Rom site operators or simply trying to impede community efforts to better or port some well loved Old and Abandonware games,

they cheat their honest to goodness customers off of their constitutionally given rights!

 

 

[Karlston]

8 hours ago, lurch234 said:

Whats are those idiots at Sony thinking anyways!?

 

Like plenty before them, they thought they could get away with lying to the consumer that their company's Terms and Conditions saved them from having to do the right thing.

 

Make no mistake, companies are fully aware of Australia's Consumer Law and their responsibilities to it. They knew their behaviour was in breach of that law.

 

The message that a company's T & C and warranty/guarantee periods cannot override consumers' common law rights is slowly getting through to the masses.

[mp68terr]

Punishing a company because its terms and conditions are against customers is a good thing. What I don't get is how the Australian law can affect companies outside Australia. Isn't it possible for these Australian customers to buy through Sony Australia?

[Karlston]

9 minutes ago, mp68terr said:

What I don't get is how the Australian law can affect companies outside Australia.

 

That's a good question. Better for the lawyers to answer that one...

 

Online distributors selling into Australia can be caught by the Australian Consumer Law, Court confirms

 

General info... Buying online from overseas retailers

 

18 minutes ago, mp68terr said:

Isn't it possible for these Australian customers to buy through Sony Australia?

 

Don't know, perhaps this particular product isn't offered by them here.