Nintendo, Xbox, PlayStation Subscription Services Under Government Investigation
All three major console platforms are under fire in the United Kingdom. A thorough investigation launched in the U.K. in regards to the subscriptions services that Nintendo Switch, Xbox, and PlayStation have for their respective hardware. Under the Electronics, Recreation and leisure sector, the case opened on April 5th, 2019 to examine the fairness of company practices pertaining to the contract terms of subscription services, states the Competition and Markets Authority.
Based on the official press release from the CMA, the open investigation will scrutinize a number of issues including:
- are the contract terms unfair? – do the companies’ terms give them wide discretion to change the quality of the deal, for example, by reducing the number of games included or increasing the price?
- how easy it is to cancel or obtain a refund? – are there any factors that make it difficult for people to cancel their contract or get their money back?
- how fair is the auto-renewal process? – are customers clearly told that their membership will be rolled over, are they regularly reminded that they are on a roll-over contract before further payments are taken, and is auto-renewal set as the default option?
According to the chief executive of the CMA, Andrea Coscelli, the organization plans on inspecting if the aforementioned companies breach consumer fairness laws. She states:
Roll-over contracts are becoming more and more commonplace and its essential that they work well for customers. Our investigation will look into whether the biggest online gaming companies are being fair with their customers when they automatically renew their contracts, and whether people can easily cancel or get a refund. Should we find that the firms aren’t treating people fairly under consumer protection law, we are fully prepared to take action.”
At this time, the Competition and Markets Authority asks consumers to speak on their experiences with subscription services from video game giants such as Nintendo, Xbox, and PlayStation. Those interested in delivering personal statements can find the right information right here.
What do you think about the auto-renewal feature that subscription services such as Nintendo, Xbox, and PlayStation have for their consoles? Do you think this is fair practice or should the United Kingdom bring the hammer down on this long-standing policy? Should other countries follow suit? Let us know what you think in the comments section below or start a conversation on Don’t Feed the Gamers Facebook page. To stay up to date on gaming and entertainment news as it happens, follow us on Twitter! Here are some of our latest:
Hoi Duong2131 Posts
Hoi is an elusive figure at DFTG, whose favorite past-times include chillin' in the Fade, reading manga, watching anime, collecting novelty items, and gaming.
