ACCC Sues Sony Over Alleged Digital Refund Refusal

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Today the Australian Competition and Consumer Commission (ACCC) has announced its intention to take Sony Europe to the Federal Court over telling customers that they couldn't receive refunds for faulty PlayStation games.

The Australian Competition and Consumer Commission (ACCC) is suing online retailer Kogan, alleging the company created fake discounts that are in breach of Australian Consumer Law.

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The consumer watchdog is alleging that from around September 2017 Sony Europe told customers who wanted their money back on faulty games that it did not have to provide a refund for digital copies, or if it had been over fourteen days since the purchase had taken place.

The ACCC further stated that the company told customers that they were not obligated to give refunds unless the game's developer authorised them to do so or said that the game was faulty beyond repair.

It is also alleging that Sony Europe offered refunds in the form of virtual store currency as opposed to money.

"We allege that Sony Europe gave false and misleading information to their customers about their rights in relation to games sold via its PlayStation Store,” ACCC Chair Rod Sims said.

"Consumer guarantees do not expire after a digital product has been downloaded as we allege Sony Europe told consumers, and refunds must be given in the form of original payment unless a consumer chooses to receive it in store credit.”

"Consumers who buy digital products online have exactly the same rights as they would at a physical store."

The ACCC is lastly alleging that from October 2017 customers were told by Sony Europe that "in its Terms of Service that its liability to provide redress for faulty products was limited."

Under consumer law this is incorrect, as it applies to all business that trade within Australia, even those selling digital products.

At the present time its unclear what dollar amount the ACCC is seeking in penalties.

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