Deceptive Patterns
‹ All enforcement EU & UK

CMA's Investigation against Nintendo Switch, PlayStation and Xbox

Jurisdiction
EU & UK
Authority
UK Competition and Markets Authority (CMA)
Date
5 Apr 2019
Case number
Press Release of 5 April, 2019
Outcome
Refunds issued and changes made

Case summary

CMA held Microsoft liable for unclear upfront terms, difficulty in turning off auto-renewal, and customers unknowingly paying for unused services in their auto-renewing Xbox Live Gold and Game Pass memberships.

Our analysis

Microsoft's Xbox Live Gold and Game Pass provide a platform for gamers to access a vast library of games and play with each other online. These products operate on a membership basis, with automatic renewal at the end of each contract period, requiring customers to actively take steps to cancel their subscription. The Competition and Markets Authority (CMA) has launched an investigation into the auto-renewal terms of Nintendo Switch, PlayStation, and Xbox to determine if they are unfair. During its investigation, the CMA identified concerns regarding Microsoft's auto-renewing subscriptions, including unclear upfront contract renewal terms, difficulty in turning off automatic renewal, and customers continuing to pay for services they no longer use. Microsoft has made commitments to address these concerns in the CMA's efforts to investigate the online console video gaming sector.

Outcome

Microsoft has made significant improvements to its Xbox memberships following an investigation by the Competition and Markets Authority (CMA). The changes include better upfront information about auto-renewal terms, refunds for accidental renewals, reminders for inactive memberships, and clearer notifications of any future price increases.

Parties

Competition and Market Authority (CMA) and Nintendo Switch, PlayStation and Xbox

View the decision

Related deceptive patterns

Hidden subscription ›The user is unknowingly enrolled in a recurring subscription or payment plan without clear disclosure or their explicit consent.Hard to cancel ›The user finds it easy to sign up or subscribe, but when they want to cancel they find it very hard.

Related laws

Consumer Protection from Unfair Trading Regulations, 2008 ›Prohibit traders across all sectors from using unfair commercial practices that hinder consumers from making informed purchasing decisions.Consumer Rights Act, 2015 ›Covers various aspects of consumer transactions, including the sale of goods and services, digital content, unfair contract terms, and remedies for faulty goods.Consumer Contracts (Information Cancellation and Additional Charges) Regulations, 2013 › Grant consumers the right to cancel contracts for goods or services made through remote communication channels such as the internet, email, or telephone.