Online console video gaming

The CMA has today launched a consumer law investigation into the auto-renewal practices of Nintendo Switch, Playstation and Xbox.

From:
Competition and Markets Authority
Published
5 April 2019
Last updated
13 April 2022 — See all updates
Case type:
Consumer enforcement
Case state:
Closed
Market sector:
Electronics, Recreation and leisure
Outcome:
Consumer enforcement - undertakings
Opened:
5 April 2019
Closed:
13 April 2022

Closure of investigation

13 April 2022: Following improvements made by Sony and Nintendo to their gaming subscription practices the CMA has now closed its investigation into the online gaming sector.

The CMA has secured an undertaking from Sony to put in place measures to protect their PlayStation Plus customers who haven’t used their memberships for a long time but are still paying.

Nintendo changed its business practices during the course of the investigation so that Nintendo Switch Online Service is no longer sold with automatic renewal set as the default option.

Update on investigation

26 January 2022: The CMA has secured undertakings from Microsoft Limited and Microsoft Ireland Operations Limited to make a series of improvements to their auto-renewing subscriptions for online gaming services. The improvements include:

  • Better upfront information: Microsoft will provide more transparent, upfront information to help customers understand their Xbox membership – making clear, for example, that the subscription will auto-renew unless the customer turns off auto-renewal; when the subscription will auto-renew; how much it will cost; and how the customer can receive a refund after an accidental renewal

  • Refunds: Microsoft will contact existing customers on recurring 12-month contracts and give them the option to end their contract and claim a pro-rata refund

  • Inactive memberships: Microsoft will also contact existing customers who haven’t used their memberships for a long time but are still paying. These customers will be reminded how to stop payments, and if they continue not to use their memberships, Microsoft will ultimately stop taking further payments

  • Better information about price increases: Microsoft will give clearer notifications of any future price rises, and will ensure people know how to turn off auto-renewal if they don’t want to pay the higher price

Undertakings:

Investigation launch

5 April 2019: The Competiton and Markets Authority opened an investigation into the supply of online gaming memberships for the Nintendo Switch, Sony Playstation and Microsoft Xbox.

The CMA 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.

The investigation will examine several issues including:

  • 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?

At this early stage, the CMA has not reached a view as to whether or not the companies have broken consumer protection law.

Call for your views

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

Contacts

Senior Responsible Officer

George Lusty (george.lusty@cma.gov.uk)

Director

James Macbeth (james.macbeth@cma.gov.uk)

Assistant Director

Mandy Young (mandy.young@cma.gov.uk)

Published 5 April 2019
Last updated 13 April 2022 + show all updates

  1. Following improvements made by Sony and Nintendo to their gaming subscription practices the CMA has now closed its investigation into the online gaming sector.

  2. Update on investigation published.

  3. First published.

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