One of the world’s largest video game companies, EA (Electronic Arts), will refund its Australian customers after it was found to have breached consumer law.

Legal action was taken against Electronic Arts Inc and related companies, EA Swiss Sàrl and Electronic Arts Proprietary Limited (together, EA), who run the Origin video game distribution service, for telling customers they were not entitled to a refund for downloaded purchases.

“It is a breach of the Australian Consumer Law for businesses to state that customers are not entitled to refunds under any circumstances. Where a product has a major failure, consumers can insist on a refund or replacement at their choice. Representations that this right has or can be excluded, restricted or modified are false or misleading,” Australian Competition and Consumer Commission chairman Rod Sims said.

EA will set up avenues for consumers who purchased a faulty video game through Origin after 1 January 2012 to get refunds, in the form of a 1800 complaints number, an email address and a post office box to handle customer complaints.

EA has also added a new section to the Origin store, accessible here, specifically for dealing with refunds on glitchy games.

Complaints from the video game community led the ACCC to find that EA’s Australian customers were not entitled to any refunds for digitally downloaded video games purchased through Origin.

EA has agreed that for the next three years that it will not make any claims such as;

  • EA has a ‘no refunds’ policy for games purchased through Origin that excludes any right to a refund under the Australian Consumer Law; and/or
  • Australian consumers are not entitled, under any circumstances, to a refund for games purchased from Origin.

EA will also:

  • amend their terms and conditions to comply with the Australian Consumer Law; and
  • implement and maintain an Australian Consumer Law Compliance Program, with particular measures for risk assessment, complaints handling and staff training.