Stevens v Sony Computer Entertainment & Ors

The High Court of Australia considered an appeal by Stevens against Sony Computer Entertainment and others concerning allegations of misleading and deceptive conduct under the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). Stevens alleged that the defendants engaged in misleading and deceptive conduct by representing that a particular video game, *Gran Turismo 3*, was compatible with the PlayStation 2 console when, in fact, it was not. The dispute centred on whether the representations made by the defendants regarding the game's compatibility were false or misleading.

The primary legal issue before the High Court was whether the representations made by the defendants concerning the compatibility of *Gran Turismo 3* with the PlayStation 2 console constituted misleading or deceptive conduct within the meaning of section 52 of the *Trade Practices Act 1974* (Cth). This required the court to determine the precise meaning and effect of the representations made and whether, in light of those representations, consumers were likely to be misled or deceived.

The High Court, in its joint judgment, found that the representations made by the defendants were not misleading or deceptive. The court reasoned that the term "compatible" in the context of video game advertising for the PlayStation 2 console referred to the ability of the game to be played on the console, which *Gran Turismo 3* demonstrably could do. The court distinguished between compatibility in this sense and the broader concept of optimal performance or the absence of technical glitches, which were not expressly or implicitly represented. The legal principle applied was that for conduct to be misleading or deceptive, there must be a real likelihood of deception or confusion among a significant number of the relevant class of consumers, and the representations made did not reach this threshold.

The appeal was dismissed.