Australian Competition and Consumer Commission v Sony Interactive Entertainment Network Europe Limited [2020] FCA 787

Australian Competition and Consumer Commission v Sony Interactive Entertainment Network Europe Limited [2020] FCA 787

SIENE made misleading or deceptive representations and false or misleading representations regarding statutory consumer guarantees and refund rights for digital games purchased via the PlayStation Store, contravening ss. 18 and 29(1)(m) of the Australian Consumer Law; agreed relief including pecuniary penalties, corrective disclosure and costs is appropriate given the nature, circumstances, extent of contravening conduct, SIENE's cooperation, and remedial measures.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Sony Interactive Entertainment Network Europe Limited; Second Respondent: Sony Interactive Entertainment Europe Limited
Jurisdiction
Australia
Judgment Date
05 June 2020
Procedural Posture
Civil Penalty Proceeding / Judgment Following Agreed Admissions and Consent Orders
Outcome
Declarations made; pecuniary penalties imposed; adverse publicity order made; costs ordered; proceeding otherwise dismissed.
Legal Topics
Misleading or Deceptive Conduct, False or Misleading Representations, Consumer Guarantees, Pecuniary Penalty, Adverse Publicity Order, Refund Rights for Digital Goods
Consumer Law Commercial Law Misleading or Deceptive Conduct False or Misleading Representations Consumer Guarantees Pecuniary Penalty Adverse Publicity Order Refund Rights for Digital Goods

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Parties

Australian Competition and Consumer Commission

Applicant

Sony Interactive Entertainment Network Europe Limited

First Respondent

Sony Interactive Entertainment Europe Limited

Second Respondent

Procedural Posture

Civil Penalty Proceeding / Judgment Following Agreed Admissions and Consent Orders

Legal Issues

  1. 1 Whether Sony Interactive Entertainment Network Europe Limited (SIENE) engaged in misleading or deceptive conduct or made false or misleading representations under ss. 18 and 29(1)(m) of the Australian Consumer Law regarding consumer guarantees and refund rights for digital games.
  2. 2 Whether the representations by SIENE's Terms of Service, purchase process communications, and PlayStation Support Centre agents contravened the ACL.
  3. 3 Whether the agreed relief (penalties, declarations, disclosure order, costs) is appropriate in all the circumstances.

Ratio Decidendi

SIENE made misleading or deceptive representations and false or misleading representations regarding statutory consumer guarantees and refund rights for digital games purchased via the PlayStation Store, contravening ss. 18 and 29(1)(m) of the Australian Consumer Law; agreed relief including pecuniary penalties, corrective disclosure and costs is appropriate given the nature, circumstances, extent of contravening conduct, SIENE's cooperation, and remedial measures.

Court Disposition

Declarations made; pecuniary penalties imposed; adverse publicity order made; costs ordered; proceeding otherwise dismissed.

Orders

  • Confidential Annexure to Statement of Agreed Facts not to be published or disclosed other than to parties or their external legal representatives pursuant to s 37AF Federal Court of Australia Act 1976 (Cth).
  • Declarations of contraventions of ss. 18 and 29(1)(m) of the Australian Consumer Law as detailed in orders 2-6.