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Changes effected on Xbox subscription auto-renewal policy after deliberations between CMA and Microsoft
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Published onJanuary 27, 2022
published onJanuary 27, 2022
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Key notes
Microsoft has alteredits practices in how it handles the automatic renewal of contracts for online gaming services.
The company offers the Xbox Live Gold and Game Pass products, which allow customers to access a library of games and play together online.
Memberships are billed on an automatic renewal basis. If you do not cancel your membership, your credit/debit card will be charged at the end of your initial contract period unless you contact them to cancel your membership.
As part of an investigation into the online console video gaming sector, the UK’s Competition and Markets Authority issued a statement regarding its concerns with Microsoft’s auto-renewing subscriptions. The concern was that consumers did not fully understand the implications of signing up for this service.
Agreeable terms
The CMA has secured undertakings from Microsoft which address these concerns. The new terms include:
Here’s what Michael Grenfell, the Executive Director of Enforcementhad to say at the CMA:
“Gamers need to be given clear and timely information to make informed choices when signing up for auto-renewing memberships and subscriptions. We are therefore pleased that Microsoft has given the CMA these formal undertakings to improve the fairness of their practices and protect consumers, and will be offering refunds to certain customers.“
“Other companies offering memberships and subscriptions that auto-renew should take note, and review their practices to ensure they comply with consumer protection law.”
What are your thoughts on the new auto-renewal policies in place? Let us know in the comment section below.
Don Sharpe
Tech Journalist
Don has been writing professionally for over 10 years now, but his passion for the written word started back in his elementary school days. His work has been published on Livebitcoinnews.com, Learnbonds.com, eHow, AskMen.com, Forexminute.com, The Writers Network and a host of other companies.
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Don Sharpe
Tech Journalist
Don has been writing professionally for over 10 years now, simplifying the tech universe for the mases.
