Sony plans PlayStation Vita rebates in FTC settlement

As part of a settlement with the Federal Trade Commission, Sony will give rebates to early buyers of its PlayStation Vita handheld video game system.

The FTC had charged the electronics giant with falsely advertising the game system's "game changing" features during the Vita's marketplace launch in late 2011 and early 2012. The agency's complaint against Sony Computer Entertainment America charged the company with false advertisting claims about Vita's "cross platform gaming," "remote play" and "cross-save" features" with the PlayStation 3.

"Unfortunately for people who bought the PS Vita, many of these supposedly game-changing features did not function as advertised," said Thomas Dahdouh, the agency's western region director.

Cross platform play only became available for a few PlayStation 3 games, the FTC says, and the pause-and-save feature varied from game to game. For MLB 12: The Show, consumers had to complete a nine-inning game on the Vita to save it on the PS3, and had to have separate copies of the game for the handheld and the console system, the agency said.

Sony will notify consumers who bought a Vita before June 1, 2012 via email about their eligibility for either a $25 cash or credit refund or a $50 merchandise voucher for select video games, and/or services.

In a statement, Sony said that "although we have a strong difference of opinion with the FTC as to the message that PS Vita purchasers took from that advertising, we decided to settle the FTC's inquiry in order to focus on the PlayStation 4's momentum into this holiday, where PlayStation Vita continues to play an important role. PlayStation has always been and will continue to be a brand built around our consumers, with a mission to deliver the best gaming experiences as our top priority."

The incident also involves the FTC's first case of involving tweets that failed to disclose the tweeter's connection to the products they were touting, Dahdouh said.

Sony's ad agency Deutsch LA mislead consumers by encouraging its employees to use Twitter and make positive tweets about the Vita without disclosing their connections to Deutsch or Sony. Both Sony and Deutsch LA are barred from making similar claims in the future in regards to handheld gaming consoles.

"I think it's safe to say this is an issue that continues to have the agency's attention especially as social media grows in increasing importance, and, frankly the increasing importance of social media in video game advertising," Dahdouh said. "It will only grow."

Sold initially for $250-up, the Vita attracted hundreds of thousands of consumers in the period who will be eligible for rebates, he said.

"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."