Microsoft to change Xbox subscription auto-renewal and refund practices in UK

Microsoft will change how it handles refunds and automatic renewal subscriptions for Xbox Live Gold and Xbox Game Pass following an investigation by UK’s Competition and Markets Authority (CMA). The CMA launched the investigation back in 2019 to determine whether or not Microsoft, Sony, and Nintendo were in breach of consumer protection laws in the UK regarding their contracts for online gaming, with a specific focus on how fair the auto-renewal process is, how easy it to obtain refunds, and if contract terms are unfair. Now, the CMA says (thanks, VGC) that after identifying and reaching out to Microsoft regarding “concerns about certain features of Microsoft’s auto-renewing subscriptions,” the authority has “secured undertakings with Microsoft which are designed to address these concerns.” Microsoft has agreed to make the following changes: 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 renewalRefunds: Microsoft will contact existing customers on recurring 12-month contracts and give them the option to end their contract and claim a pro-rata refundInactive 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 paymentsBetter 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 priceMichael Grenfell, the CMA’s executive director of enforcement said, “Gamers need to be given clear and timely information to make informed choices when signing up for auto-renewing memberships and subscriptions. We are therefore pleased that Microsoft has given the CMA these formal undertakings to improve the fairness of their practices and protect consumers, and will be offering refunds to certain customers.”Other companies offering memberships and subscriptions that auto-renew should take note, and review their practices to ensure they comply with consumer protection law.”



Source link