Microsoft’s UK arm has committed to making a number of consumer-focused improvements to Xbox subscription auto-renewal practices.
The improvements were agreed upon as part of an investigation by the Competition and Markets Authority (CMA) to determine whether online gaming contracts offered by Microsoft, Sony and Nintendo are breaching consumer protection laws.
Launched in April 2019, the investigation is focused on several key issues including whether contract terms are unfair, how easy it is to cancel or obtain a refund, and how fair the auto-renewal process is.
On Wednesday, the CMA said it has received the following undertakings from Microsoft to improve its Xbox Live Gold and Xbox Game Pass auto-renewal practices.
The CMA said undertakings like those agreed to by Microsoft are voluntary agreements companies make to address an enforcement authority’s concerns and resolve an investigation without the need for court action.
“Gamers need to be given clear and timely information to make informed choices when signing up for auto-renewing memberships and subscriptions,” said Michael Grenfell, executive director of enforcement at the CMA.
“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.”
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