Faulty video games lead to $3.5m payout in Australian court

PlayStation owner Sony has been ordered to pay $3.5 million after misleading Aussie customers who bought faulty games, the Australian Competition and Consumer Commission has said.

In a release, the ACCC said Sony Europe customer service representatives told the customers that Sony Europe wasn't required to refund the game after it had been downloaded, or if 14 days had passed since purchase.

"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," ACCC Chair Rod Sims said.

One of the customers was told that Sony only needed to provide a refund if authorised to do so by the game developer, while a fifth customer was offered a refund in virtual PlayStation currency.

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

"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."

The Court also declared Sony Europe breached the ACL by telling one of the four consumers it did not have to provide a refund unless the game developer authorised it, and by telling a fifth consumer that Sony Europe could provide a refund using virtual PlayStation currency instead of money.

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

"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," Mr Sims said. 

Sony Europe has admitted liability and will contribute to the ACCC's legal costs.