Sony Computer Entertainment America has settled allegations with the Federal Trade Commission (FTC) that it misled consumers about PlayStation Vita handheld gaming console features, .

Reuters reports that in Tuesday's settlement, Sony agreed to stop making the misleading claims about features and give consumers who purchased the gaming console either a $25 refund or $50 coupon to buy games, according to the FTC.

Sony, along with its advertising company, Deutsch LA, had inaccurately claimed the console would allow consumers to play games remotely and consumers who bought the 3G version could engage in live multiplayer gaming. Another untrue claim the companies made was that gamers could begin a game on the PlayStation 3 and move it to the PS Vita without losing continuity, according to the FTC.

The fact is, however, that most PlayStation 3 games cannot be played remotely and only a handful can be played across the platforms.

According to the FTC, Deutsch LA knew or should have known the ads were inaccurate when they created the advertising for the PS Vita launch.

The FTC also filed a complaint against Deutsch LA for asking employees to praise the PS Vita on their personal Twitter accounts without disclosing their relationship to Sony.

It was the first time the FTC has taken action against a company for inappropriately advertising on Twitter, reports the Washington Post.

Last March, the FTC revised its online advertising disclosure guidelines to add that sponsored social media plugs, like tweets, must be disclosed to ensure ad campaigns are not deceptive.

"The advertising at issue in the FTC inquiry went to market more than two years ago at PS Vita's launch in February 2012," Sony said in a statement. "Although we have a strong difference of opinion with the FTC as to the message that PS Vita purchasers took from that advertising, we decided to settle the FTC's inquiry in order to focus on the PlayStation 4's momentum into this holiday, where PlayStation Vita continues to play an important role."

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