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The CMA welcomes improvements made by Sony and Nintendo to their gaming subscription practices and has now closed its investigation into the online gaming sector.
The Competition and Markets Authority’s (CMA) sector-wide investigation looked at subscriptions for online gaming services where people automatically continue to be charged indefinitely until they take action to end their contract. The CMA was particularly concerned that people might find themselves locked into paying for services they no longer want or use.
The CMA has an secured an undertaking from Sony relating to its PlayStation Plus product, a service which allows users to play online together. In particular, Sony has agreed to put in place measures to protect customers who haven’t used their memberships for a long time but are still paying. Sony will contact these customers to remind them how to stop payments and, if they continue not to use their memberships, Sony will ultimately stop taking further payments.
The CMA also engaged with Nintendo, which changed its business practices during the course of the investigation so that Nintendo Switch Online Service is no longer sold with automatic renewal set as the default option. This means people will not be automatically entering into renewing contracts, addressing a number of the CMA’s concerns about people becoming locked in.
Michael Grenfell, Executive Director of Enforcement at the CMA, said:
As a result of our investigations, a number of changes have been made across this sector to protect customers and help tackle concerns about auto-renewing subscriptions.
Today’s announcement therefore concludes our investigations into the online video gaming sector. Companies in other sectors which offer subscriptions that auto-renew should review their practices to ensure they comply with consumer protection law.
This announcement follows undertakings agreed with Microsoft in January 2022 in relation to its online gaming subscriptions.
More information about the CMA’s investigation is available on the online gaming sector case page.
The CMA also recently launched the ‘Online Rip-Off Tip-Off’, a campaign designed to make shoppers aware of the importance of understanding the terms of any deal they sign up to, giving out practical tips to help them protect themselves when shopping online.
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