Sony Reaches PlayStation Vita Settlement with FTC

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Under the terms of a recent settlement with the Federal Trade Commission (FTC), Sony Computer Entertainment America will provide refunds to some consumers who purchased the PlayStation Vita handheld gaming console.

The PlayStation Vita was first sold by Sony in the United States in February 2012 for about $250. The PlayStation Vita was marketed as a portable device that allows gamers to play video games “on the go,” without being attached to a television screen.

According to the FTC, Sony’s advertisements “promoted, among other things, three notable features of the PS Vita. First, it promoted the ‘remote play’ feature as a way that consumers could access games already residing on their PS3 consoles and play them remotely on the PS Vita anywhere with a Wi-Fi connection. Second, advertisements represented that, with the ‘cross platform gaming’ or ‘cross save’ feature, consumers could begin playing a game on PS3, save their progress at any point in the game, and then continue that game where they left off on the PS Vita. Third, with the ‘3G version’ of the PS Vita, available for an extra $50 and monthly fees, advertisements represented that consumers could access a 3G network to play games live with others (‘multiplayer gaming’).”

However, the FTC alleged that most PlayStation 3 games could not be played remotely. Further, only a few could be played “cross-platform,” and consumers were unable to engage in live, multiplayer gaming as promised by Sony and Deutsch LA, according to the FTC. Under the terms of the false advertising settlement with the FTC, Sony is prohibited from using similarly misleading advertisements in the future.

“As we enter the year’s biggest shopping period, companies need to be reminded that if they make product promises to consumers – as Sony did with the ‘game changing’ features of its PS Vita – they must deliver on those pledges,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to act on behalf of consumers when companies or advertisers make false product claims.”

Consumers who purchased a Vita prior to June 1, 2012 will reportedly receive an email from Sony about their eligibility for benefits from the false advertising settlement. The benefits from the FTC settlement include a $25 cash refund or a $50 merchandise voucher that can be used for certain video games and/or services.

Hundreds of thousands of consumers will be eligible for rebates from the false advertising settlement. Sony will send an email to eligible consumers after the false advertising settlement is finalized.

According to the FTC, Deutsch LA had urged its employees to praise the PlayStation Vita on Twitter, but did not instruct them to disclose their relationship to Sony. The company should have known its advertisements were misleading, the FTC said. Under a separate false advertising settlement with the FTC, Deutsch LA is prohibited from such conduct in the future.

The Sony PlayStation Vita Lawsuit is In the Matter of Sony Computer Entertainment America LLC, before the Federal Trade Commission.

UPDATE: Instructions on how to file a claim for the Sony PlayStation Vita settlement are now available! Click here or visit www.VitaClaims.com for details.