Electronic Arts Inc (Central Index Key 0000712515) - s.87B undertaking

Undertaking date: 
23 April 2015
Undertaking type: 
s.87B undertaking
Reference number: 
D15/16444
Section: 
Sections 18 and 29(1)(m), Part 5-4 of the ACL

Company or individual details

  • Electronic Arts Inc (Central Index Key 0000712515)
  • EA Swiss Sarl (CH-660-2328005-8)
  • Electronic Arts Proprietary Limited
    003367824

Undertaking

The Australian Competition and Consumer Commission (ACCC) has accepted a section 87B undertaking from American based Electronic Arts Inc (Central Index Key 0000712515), Swiss based EA Swiss Sarl (CH-660-2328005-8) and Australian based Electronic Arts Proprietary Limited (ACN 003 367 824) (together, EA) for making misrepresentations about consumer guarantees and refund entitlements for video games purchased from its online store, Origin.

EA is an entertainment software and technology company which develops, publishes and sells video games. It also operates an online store, Origin, where it sells downloadable digital copies of video games to consumers globally.

From at least 1 January 2012, EA made certain statements in various contractual and other documents provided through or displayed on Origin to Australian consumers and via customer support representatives in response to complaints about faulty games purchased through Origin including that:

·        Australian consumers had no entitlement to any refunds from EA for games purchased through Origin; and

·        EA had modified or restricted statutory consumer guarantees in relation to games purchased by Australian consumers through Origin.

By engaging in the above conduct, the ACCC considers that EA likely contravened sections 18 and 29(1)(m) of the Australian Consumer Law (ACL), being Schedule 2 of the Competition and Consumer Act 2010 (Cth).

To address the ACCC's concerns, EA has voluntarily provided the ACCC with a court-enforceable undertaking that acknowledges the representations it made to consumers likely contravened the ACL, and that it will:

·        for a period of three years, not make anyrepresentations to Australian consumers that EA has a no refunds policy thatexcludes any right to a refund under the ACL, or Australian consumers are notentitled to a refund under any circumstances;

·        amend various contracts and documents on or related to Origin;

·        publish a Consumer Rights Notice on Origin;

·        establish and implement a Consumer Redress Program over the next three months to reassess and assess consumer complaints in accordance with the Australian Consumer Law; and

·        establish and implement a Consumer Law Compliance Program, which includes formal staff training, risk assessment and complaints handling.

 

Attachments

Undertaking.pdf