updated - September 29, 2020 Tuesday EDT
Japanese multinational firm's U.S.-based arm will be giving partial refunds in response to the Federal Trade Commission (FTC) allegation against their misleading advertisements for Sony Playstation Vita remote gaming console.
Sony Computer Entertainment America and FTC agreed on a settlement where the Tokyo-based tech giant will be giving refunds to thousands who bought the remote gaming console Plasytation Vita before June 1, 2012.
Gamers who own PS Vita units will be given the option of getting either a $25 worth of cash or credit refund or Sony merchandise voucher worth $50. Playstation gaming console customers will have to wait for the email from the tech giant about the refunds or the vouchers.
Part of the settlement also stops Sony and Deutsch LA in claiming that the gaming console will allow its users to "play remotely and would allow them to begin a game on the PlayStation 3, and then move to the smaller Vita without losing continuity."
Deutsch LA, Sony's advertising partner for Playstation Vita which costs about $250, made an ad which highlights the game changing technology of the gaming console. It then appeared that the remote play and cross platform feature is not playable, thus FTC asked for an answer.
"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," FTC officer, Jessica Rich, said.
As the advertising firm who made the ad with questionable "promises," Deutsch LA also agreed for a settlement with the FTC. Aside from making the ad, the Los Angeles and New York-based ad agency has reportedly "urged its staffers to praise the device on Twitter without also instructing them to disclose their relationship to Sony."
Sony's America-based arm, Deutsch LA and FTC's settlement agreements will be up for public comment for 30 days.
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