The Competition and Markets Authority is looking at the practice as used on the Nintendo Switch, Sony Playstation and Microsoft Xbox.
The Competiton and Markets Authority opened an investigation into the supply of online gaming memberships for the Nintendo Switch, Sony Playstation and Microsoft Xbox.
As well as buying consoles and games, people can pay for online services, such as playing against other gamers, communicating with other players, and extra games. These services can involve a membership which is often entered into on an auto-renewal basis. This means that money will be automatically taken from a person’s account as the membership rolls over.
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:
The CMA has not yet reached a view as to whether or not the companies have broken consumer protection law.