Since April 2019, the UK's CMA (Competition and Markets Authority) has been investigating whether some gaming companies have violated consumer protection laws when it comes to offering online gaming contracts. Especially the three giants of Sony, Microsoft and Nintendo. The survey focused on several key issues, including whether the terms of the contract were unfair, how easy it was to cancel or get a refund, and how fair the auto-renewal process was.
The CMA said yesterday (January 26) that it has received microsoft commitments to improve its Xbox Live Gold and Xbox Game Pass subscription services. Microsoft will provide more transparent upfront information to help customers understand their Xbox membership — for example, making it clear that subscription services will automatically renew unless the customer turns off auto-renewal; when subscription services will automatically renew; how much will cost them; and how customers will receive refunds after unexpected renewals. Subscribers to the subscription may terminate their subscription at any time and will receive a proportional refund of the duration. Microsoft will also remind subscribers who have not used memberships for a long time to stop payments, and subscribers who still do not use membership services will be automatically unsubscribed to avoid automatic billing.
In response, the CMA said That Microsoft's actions are a voluntary agreement made by the company to address the concerns of law enforcement agencies and resolve the investigation, without going through court proceedings. Michael Grenfell, CMA's executive director of enforcement, said gamers need to provide gamers with clear and timely information when offering auto-renewal membership and subscription services in order to make reasonable choices. The CMA is pleased that Microsoft has provided them with these formal commitments to improve the fairness of its practices and protect consumers, as well as to provide refunds to some consumers who need them. Other companies providing these services should also take note of their practices to ensure compliance with consumer protection laws.