Platform owners endorse Microsoft’s efforts to update online services following CMA’s investigation
Both Sony and Nintendo have agreed to update the guidelines regarding their respective online subscription services following a study of auto-renewal practices conducted by the Competition and Markets Authority.
Sony has agreed to implement new measures for PS Plus subscribers, which includes contacting long-term customers who have not used the service for a while, to remind them how to cancel subscriptions. If users do not cancel the service but do not actively use it, Sony will stop receiving payments.
Nintendo has also changed its business practices; its Nintendo Switch Online service will no longer be sold with auto-renewal set as the default setting. If users want to turn it on, they must do so after registration.
The two platform owners are following Microsoft’s agreement to change the way it presents information to Game Pass subscribers. Back in January, the company promised new terms that clearly show information about a membership, including the price, how to cancel it, and how to get a refund.
“As a result of our research, a number of changes have been made across this sector to protect customers and help address concerns about automatic subscription renewal,” said Michael Grenfell, CMA’s Executive Director.
“Today’s announcement therefore concludes our investigations into the online video game industry. Companies in other sectors that offer subscriptions that are automatically renewed should review their practices to ensure that they comply with the Consumer Protection Act.”