The changes relate to the automatic renewal of contracts for online gaming services. Microsoft’s Xbox Live Gold and Game Pass are offered as memberships, which are often on an auto-renewal basis. These products allow people to access a library of games and play together online.
As part of an investigation into the online console video gaming sector the Competition and Markets Authority (CMA) identified concerns about auto-renewing subscriptions, in particular: whether it was clear upfront that contracts would automatically renew; how easy it was to turn off automatic renewal; and whether people may not have realised they were still paying for services they no longer used.
The CMA has secured undertakings with Microsoft which are designed to address these concerns. 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
Full details of the undertakings are available on the CMA’s website.