Sony and Nintendo to Change Their Automatic Renewal Policy in the UK

Sophie Webster, Tech Times 13 April 2022, 09:04 pm

Sony and Nintendo are reportedly making changes to their gaming subscriptions in the United Kingdom after working with a regulator in the country.

Sony and Nintendo to Change Gaming Subscriptions

The UK's Competition and Markets Authority or CMA has raised concerns about how the users may be charged for subscriptions indefinitely until they cancel the subscription themselves.

This could mean that they are paying for services that they do not even use, according to Eurogamer.

For PlayStation Plus, the CMA said that Sony has agreed to put in place measures to protect the users who have not used their memberships for a long time, but they are still paying for it.

Sony will reportedly contact these users to remind them how to stop payment and if they continue not to use their memberships, the company will stop making further payments from the account that they have linked in.

Also Read: Sony Offers 25% Discount For PlayStation Plus Subscriptions Ahead of PS5 Release With a Catch

However, Sony did not specify if these said changes will only apply in the United Kingdom or if they will be extended to other countries.

The CMA also made a deal with Nintendo, which changed its business practices during the course of the investigation so that the Nintendo Switch Online Service is no longer sold to users with automatic renewal set as the default option.

According to the regulator, this means that users will no longer be forced to renew their contracts. This addresses several of the CMA's concerns about users becoming locked in.

The change applies in the Nintendo eShop and on the Nintendo website in all countries and regions that are operated by Nintendo of Europe, according to the statement sent by the company to The Verge.

Microsoft also committed to changes in January in response to the regulator's concerns. This includes contacting customers who were still paying for memberships that they had not used in a very long time.

At the time, Microsoft told The Verge that it would initially roll out its changes in the United Kingdom and make them available worldwide soon.

The CMA first announced that it was investigating the auto-renewal policies of the three companies back in 2019. That investigation is now closed, according to the CMA on Apr. 13.

The change comes after PlayStation Plus upgraded its service to compete with Sony.

In early 2022, Sony revealed its Game Pass service.

Auto-Renewal Subscriptions Under Spotlight

According to JD Supra, the UK government is considering responses to its proposed reforms to auto-subscription rules for consumer contracts, as part of its broader consultation on reforming the competition and consumer policy in the United Kingdom.

Depending on the approach, businesses could be asked to update their subscription terms and their conditions, as well as their initial and ongoing contracting processes with consumers.

The proposed reforms would not need changes to business-to-business subscription contracts.

Subscription models can be beneficial to both businesses and users, offering reasonable prices for services, good, and content as well as operating with more predictable revenue.

For certain sectors, auto-renewing subscriptions are an important part of sustaining the online business models.

However, the UK government has expressed concern in respect of arrangements which may leave the consumers locked in to contracts that auto-renews, and invited submissions from stakeholders as part of its consultation.