For a long time since its launch, Sony has struggled to keep stores in stock with its latest next-generation console, the PS5. Part of the reason is due to pandemic-induced locks that forced manufacturers to close the business in accordance with quarantine and security protocols. Last year, it had caused a global shortage of semiconductors and computer parts. The ripple effect is enormous, and the crisis has broken into the present. This, of course, has far-reaching consequences. Another reason, even though it is man-made, is that it scalps.
The long-standing shortage has given certain people an advantage in crafting – by using automated robots to sweep clean supplies worth hundreds of thousands from various retailers in seconds and then continue to sell them at a higher price. This method has been considered harmful, and lawmakers across the UK have recently moved a bill to criminalize it. While scalp groups based in the UK tried to validate the practice by citing financial difficulties, others claimed to do charity with the profits.
In India’s own heartland, the idea seems to have spread to some of Sony’s own scam dealers. The scheme, found by IGN India, focuses on scalps that also happen to be retail partners authorized by the electronics and entertainment giant.
@Sony @PlayStationIN this is Playstation’s authorized dealer scalp PS5 named “Kalra Electronics” in Karol Bagh, Delhi. Instead of Rs.50k, he requires 65-75k rupees for PS5. This is the situation of your “AUTORIZED STAR DEALERS” in India. Ta grep pic.twitter.com/NIRUjjvaAh
– sagar (@SsNoxioussS) February 9, 2021
According to the report, some Sony-affiliated stores in Delhi, the capital of the country, have committed fraudulent business by selling official shares of PS5 above the announced MRP (Maximum Sale Price). PS5 consoles that were priced at NOK 49,990 were sold for NOK 65,000. Some of these outlets have reportedly also asked their customers to lie if they are questioned by Sony.
Not only does this violate the dealership agreement between the relevant partner and the manufacturer, it is also illegal. Charging over MRP in India, as reported by The Legal Metrology Department, is an offense that criminalizes the trader under section 36 of the Legal Metrology Act, 2009. MRP acts as a market regulator (the highest retail price is determined by the manufacturer) and was introduced in India in 1990 to protect consumers and prevent retailers from tax evasion. Consumer interests are thus protected by the Consumer Disputes Redressal Forum.
Kalra Electronics joins Gameshopee (and some Sony centers) to scalp official PS5 shares. Fantastic selection of authorized dealers we have. https://t.co/ZFZM8EUwL8
– I do not want to update you on PS5 India Restocks. (@ PS5India) February 11, 2021
Sources from Sony informed IGN India that the company will carry out an audit of the entire retail network in the country after the launch of the new console and is aware of such activities.
He never refunded my cancellation prepayment cancellation. Big scam. Also if you buy something, the packaging is worst, you will find the game damaged, free posters are folded poorly 🤦🏻♂️🤦🏻♂️ pic.twitter.com/F1twT53p3o
– Vivek Agarwal (@vivekpsn) February 11, 2021
Meanwhile, several people are accusing Delhi-based retailer Kalra Electronics, which also happens to be a retailer of Sony, of allegedly falling refunds when canceling pre-orders.
It is extremely tragic that authorized dealers practice scalping. It defeats time and effort that people have glued to their screens, and tries to spot a drop / restock to secure the PS5.
We will update this article when there is an official public statement from Sony about the same. For more content related to PS5, stay with us, here at Spiel Times.
Until next time, Be safe, wear a mask and happy play!