Sony fined 3.5 million Australian dollars over money-back policy

Sony must pay a fine of 2.15 million euros for falsely informing customers about the rights surrounding the refund policy of games. Sony said it would not have to refund buyers of a defective game, but the judge said that would violate Australian law.

The lawsuit was filed last year by the Australian Competition & Consumer Commission, the country’s trade watchdog. The ACCC sued Sony Europe, the part of the company that also serves the Australian market.

The fine is for misinforming consumers on the website. Sony also broke the law by telling buyers that it only had to refund money if the developer authorized it. Sony also allegedly told a fifth customer that it would only refund PlayStation credit instead of money. That too is illegal.

The case revolves around four gamers who bought a game via PlayStation Network that turned out not to work. The gamers asked for their money back, but Sony refused. The company referred to its terms and conditions. It states that it does not require a refund if the game has already been downloaded, or after 14 days of purchase.

According to the ACCC, that is against Australian law. “Consumer rights do not expire after products are downloaded or after 14 days, or after any other arbitrary date specified by a game store or developer,” ACCC President Rod Sims said in a statement.

“It doesn’t matter where in the world the headquarters are if the customer is Australian,” says Sims. “Consumers who buy digital products online have exactly the same rights as when they buy something in a physical store.”

The fine was imposed by a federal judge. Sony has to pay 3.5 million Australian dollars, converted almost 2.16 million euros. The company must also pay the costs of the lawsuit.