Sony Interactive Entertainment Europe has been ordered by Australia's Federal court to pay AUD$3.5 million ($2.4 million) in penalties.
In a statement, the The Australian Competition and Consumer Commission said the platform holder made "false and misleading representations on its website and in dealings with Australian consumers about their Australian Consumer Law rights."
The case centred around four consumers who contacted Sony Europe about purchased games they believed to have been faulty.
Sony Europe operates the PlayStation Support Centre that serves Australia, among other territories. It is also responsible for the PlayStation Network Terms of Service that Australian consumers must agree to.
The four users were told Sony Europe is not required to refund the game after it has been downloaded, or if more than 14 days have passed since purchase.
One customer was told a refund could not be provided unless the game's developer authorised it, while a fifth customer was told a refund could only be provided as PlayStation Store credit.