For a long time since its launch, Sony has struggled to keep retail stores stocked with its latest next-generation console, the PS5. Part of the reason is due to the pandemic-induced blockages that forced manufacturers to shut down operations in accordance with the quarantine and security protocols. Last year, this caused a global shortage of semiconductors and computer parts. The ripple effect is vast and the crisis has penetrated the contemporary. This, of course, has far-reaching consequences. Another reason, although man-made, is scalping.
The long shortage has given certain people the advantage of engaging in secret business – using automated bots to sweep clean supplies worth hundreds of thousands from various retailers in just seconds and then sell them at a higher price. This method was considered harmful and lawmakers across the UK recently moved a bill to criminalize it. While groups of UK-based money changers tried to validate the practice by citing financial difficulties, others claimed to do charity with profits.
In the heart of India, the idea seems to have spread to some of Sony’s own devious retailers. The scheme, discovered by IGN India, focuses on money changers who happen to also be retail partners authorized by the electronics and entertainment giant.
@Sony @PlayStationIN this is the Playstation scalping authorized PS5 reseller called “Kalra Electronics” located in Karol Bagh, Delhi. Instead of Rs.50k, he is demanding 65-75k rupees for the PS5. This is the situation of its “AUTHORIZED STAR RESELLERS” in India. Please act pic.twitter.com/NIRUjjvaAh
– sagar (@SsNoxioussS) February 9, 2021
According to the report, certain Sony affiliated stores in Delhi, the country’s capital, have committed commercial negligence by selling official PS5 stocks above the notified MRP (maximum retail price). PS5 consoles that cost ₹ 49,990 were sold for ₹ 65,000. Some of these establishments also reportedly asked their customers to lie if questioned by Sony.
This not only violates the dealership agreement between the partner and the manufacturer in question, it is also illegal. Charging above MRP in India, as stated by the Legal Metrology Department, is an offense that makes the trader liable to prosecution under section 36 of the 2009 Legal Metrology Act. MRP acts as a market regulator (the maximum price retailer is decided by manufacturer) and was introduced in India in 1990 to protect consumers and prevent retailers from tax evasion. Consumer interests are therefore protected by the Consumer Disputes Redressal Forum.
Kalra Electronics joining Gameshopee (and some Sony Centers) in scaling PS5’s official stock. Incredible selection of authorized resellers we have. https://t.co/ZFZM8EUwL8
– I will not update you on the PS5 India Restocks. (@ PS5 India) February 11, 2021
Sony sources informed IGN India that the company will carry out an audit of its entire retail chain in the country after the launch of the new console and is aware of such activities.
He never refunded my cancellation of the pre-order money. Great fraud. Also, if you buy something, the packaging is the worst, you will find the game box broken, free posters badly folded pic.twitter.com/F1twT53p3o
– Vivek Agarwal (@vivekpsn) February 11, 2021
Meanwhile, more people are raising charges against Kalra Electronics, which is also a retail partner for Sony, for allegedly refusing refunds on pre-sale cancellation.
It is extremely tragic that authorized retailers practice scalping. This defeats the time and effort put by people glued to their screens, trying to locate a drop / refuel to protect the PS5.
We will update this article when there is an official public statement by Sony about it. For more PS5-related content, stay with us, here at the Spiel Times.
Until next time, Stay safe, wear a mask and have a good game!