Both Nintendo and Sony have been told by the Competition and Markets Authority to update their subscription guidelines for their online services. Nintendo has now agreed to alter its business practices for the Nintendo Switch Online subscription service. The auto-renew option used to be set to on when a user subscribed to Nintendo Switch Online, now the auto-renewal option is not on by default and it will have to be activated by the user if they wish to automatically keep subscribing. Microsoft agreed to the terms back in January which now means that subscribers to Xbox Live and Xbox Game Pass have more information on a membership including how to cancel it, and how to get a refund.
“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,” said Michael Grenfell, executive director of enforcement at the CMA.
“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.”