Cases And Accessories

Microsoft is making adjustments to Xbox Recreation Cross subscriptions after UK regulator raised issues

Source: Pocketnow

A UK regulator has raised concerns about Microsoft’s Xbox subscriptions. The United Kingdom’s Competition and Markets Authority (CMA) raised a number of concerns about the subscription practices used by Microsoft and urged the company to make some changes to the auto-renewing subscription system.

The changes requested by the CMA relate to Microsoft’s practices regarding the auto-renewing subscription system. The Xbox Game Pass and Xbox Live Gold memberships give users access to a large library of games, which can then be played online on an Xbox gaming console or on PCs. According to the CMA, memberships are auto-renewing and all subscriptions and memberships are renewed. The problem is that many people forget to sign up for the trial and other offers, and they are often charged as they tend to forget.

The CMA wants to change this and has identified and raised a number of concerns about many of Microsoft’s practices related to the automatic renewal agreements. Microsoft agreed to address the issues mentioned and make a list of improvements:

  • Better upfront information: Microsoft will provide more transparent upfront information to help customers understand their Xbox membership – for example, by clarifying that the subscription will automatically renew unless the customer turns off auto-renewal; when the subscription automatically renews; How much will it cost; and how the customer can get a refund after an accidental renewal
  • Refunds: Microsoft will contact existing customers with 12-month recurring contracts and give them an opportunity to end their contract and request a prorated refund
  • Inactive memberships: Microsoft will also contact existing customers who have not used their memberships for a long time but are still paying. These customers will be reminded how to stop paying, and if they continue not using their memberships, Microsoft will eventually stop accepting payments
  • Better information about price increases: Microsoft will provide clearer notifications about future price increases and make sure users know how to turn off auto-renewal if they don’t want to pay the higher price

It’s unclear if this will apply to other companies in the future, and if the CMA will investigate and force other companies to do the same. The CMA currently only advises other companies to “take note”.

Michael Grenfell, Executive Director of Enforcement at the CMA, said the following:

“Gamers need clear and timely information to make informed decisions when signing up for auto-renewing memberships and subscriptions. We are therefore pleased that Microsoft has made these formal commitments to the CMA to improve the fairness of its practices and to protect consumers, and will offer refunds to certain customers. […] Other companies offering auto-renewable memberships and subscriptions should take note and review their practices to ensure they comply with consumer protection laws.”

The good news is that the above improvements won’t be limited to the UK, and Microsoft has confirmed through TheVerge that “changes to inactive subscriptions will be rolling out in the UK first and will soon be available globally”.

Microsoft recently announced it would acquire Activision Blizzard in a deal worth $68.7 billion. It remains to be seen whether the deal that could make Microsoft one of the largest and leading game makers in the world goes through.

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