The UK’s Competition and Markets Authority has launched an investigation into console auto renewals

The UK’s Competition and Markets Authority has announced that is has launched a consumer law investigation in “the auto-renewal practices of Nintendo Switch, PlayStation and Xbox.” The CMA describes itself as follows;

We work to promote competition for the benefit of consumers, both within and outside the UK. Our aim is to make markets work well for consumers, businesses and the economy.

CMA is a non-ministerial department.

The investigation was opened on April 5 and is specifically looking into;

  •  use of roll-over contracts
  • cancellation and refund policies
  • any changes made to the membership

The CMA states that it is “concerned about whether some of these companies’ business practices are legal, such as their use of auto-renewals for online gaming contracts, their cancellation and refund policies, and their terms and conditions.” 

Console Auto Renewal Investigation

According to the CMA’s press release, it has contacted Nintendo, PlayStation and Xbox and requested information about their online contracts with subscribers. This is to assist in understanding these subscriptions and the practices of Nintendo, PlayStation and Xbox.

The CMA is seeking input from the public;

If you are a gamer with a current or expired membership for online gaming for any of the products listed here, the CMA would like to hear from you. Please use the email address below to share your experiences.

onlinevideogaming@cma.gov.uk

Chief Executive of the CMA Andrea Roscelli said, “Roll-over contracts are becoming more and more commonplace and it’s essential that they work well for customers. Our investigation will look into whether the biggest online gaming companies are being fair with their customers when they automatically renew their contracts and whether people can easily cancel or get a refund.

“Should we find that the firms aren’t treating people fairly under consumer protection law, we are fully prepared to take action.”

The issues that the CMA will be specifically focusing on are;

  • are the contract terms unfair? – do the companies’ terms give them wide discretion to change the quality of the deal, for example, by reducing the number of games included or increasing the price?
  • how easy it is to cancel or obtain a refund? – are there any factors that make it difficult for people to cancel their contract or get their money back?
  • how fair is the auto-renewal process? – are customers clearly told that their membership will be rolled over, are they regularly reminded that they are on a roll-over contract before further payments are taken, and is auto-renewal set as the default option?

The CMA has stated that at this stage it has not formed a view on whether Nintendo, PlayStation or Xbox have broken any consumer protection laws.

Leo Stevenson
Leo Stevensonhttps://powerup-gaming.com/
I've been playing games for the past 27 years and have been writing for almost as long. Combining two passions in the way I'm able is a true privilege. PowerUp! is a labour of love and one I am so excited to share.

━ more like this

Forza Horizon 5 Review (PS5 Pro) | Broadened Beautifully

Back in 2012, Playground Games popped the clutch on the first Horizon Festival in Colorado, setting a new benchmark for open‑world racers. Each (very...

This Day in Aussie Gaming: The Notable Milestones of Apr 16

In the ever-evolving landscape of gaming, revisiting the classics is not simply a trip down memory lane. It’s an exploration of ingenuity, risk-taking, and...

Indiana Jones and The Great Circle Review (PS5 Pro) | A Shinier Treasure

Unlike my colleague, who swung right into The Great Circle at Xbox launch, I held back and nervously gauged this golden idol from afar....

This Day in Aussie Gaming: The Semi-Timeless Must Plays of Apr 14

There’s a magic in revisiting the games that not only defined our childhoods but also paved the way for modern gaming marvels. In Australia,...

This Day in Aussie Gaming: Reliving the Golden Oldies of Apr 11

Looking to feel old? Today you can as we journey back to the launch dates of Suikoden (1997), Dino Crisis 2 (2003), Defiance (2013),...