Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Sony settles misrepresentation charges over PlayStation Vita capabilities, (Nov 25, 2014)

By Greg Hammond, J.D.

Sony Computer Entertainment America has agreed to provide checks, credits, or vouchers to purchasers of the PlayStation Vita (PS Vita), settling false advertising claims regarding the “game changing” technological features of the handheld gaming console. Eligible purchasers are those who bought the PS Vita prior to June 1, 2012 (In the Matter of Sony Computer Entertainment America LLC, File No. 122-3252).

According to the FTC’s complaint, Sony advertised three notable features of the PS Vita: (1) a “remote play” feature that would allow consumers to access games from their PlayStation 3 (PS3) console and play them remotely on PS Vita anywhere with a Wi-Fi connection; (2) “cross platform gaming” or a “cross save” feature that would allow consumers to play a game on their PS3 console, save their progress at any point in the game, and then continue the game on their PS Vita; and (3) that the “3G” version of the PS Vita could access a 3G network to play games live with others.

However, the FTC alleged that the three advertised “notable features” were false. First, it argued that users could not easily access their PS3 games on their PS Vita, because most were not remotely playable, and the PS3 system was not designed to support remote play functionality. Second, the “cross platform gaming” feature was only available for a limited number of PS3 games, and the “cross save” feature varied significantly by game. Finally, the Commission alleged that owners of the 3G version were not able to engage in live, multiplayer gaming through a 3G network. Consequently, the FTC asserted that Sony’s advertisements amounted to deceptive acts or practices in or affecting commerce, in violation of Section 5 of the FTC Act.

“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,” stated FTC Bureau of Consumer Protection Director Jessica Rich. “The FTC will not hesitate to act on behalf of consumers when companies or advertisers make false product claims.”

The consent order requires that Sony provide eligible purchasers with a $25 check or credit, or—alternatively—with vouchers for merchandise and video games with a retail value of $50 or more. In addition, Sony is prohibited from: misrepresenting any material gaming feature or capability of a product when used as a standalone device to play videogames; representing that a game console product can interact or connect to other console products during gaming, unless Sony possesses and relies upon competent and reliable evidence that substantiates the representation; or representing that any handheld game console product can interact with or connect with any home game console product during gaming, unless it clearly discloses that consumers must purchase two versions of the same video game, if applicable.

The Commission filed a similar complaint and settlement against Deutsch LA, Inc.—Sony’s advertising agency for the PS Vita launch. Specifically, the Commission alleged that Deutsch knew or should have known that the advertisements contained misleading claims about the PS Vita’s cross platform and 3G capabilities (In the Matter of Deutsch LA, Inc., File No. 122 3252).

Companies: Sony Computer Entertainment America LLC; Deutsch LA, Inc.

News: Advertising FederalTradeCommissionNews