[Grisham]

Microsoft will make changes to how it handles auto-renewal for subscriptions to Xbox Live Gold and Game Pass after agreeing to a set of commitments with the UK's Competition and Markets Authority (CMA).

The regulator is currently investigating auto-renewal practices from the big three platform holders: Nintendo, Sony and Microsoft.

Under the terms of the agreement, Microsoft will make the following improvements to address the CMA's concerns:

• Better upfront information: Microsoft will provide more transparent, upfront information to help customers understand their Xbox membership - making clear, for example, that the subscription will auto-renew unless the customer turns off auto-renewal; when the subscription will auto-renew; how much it will cost; and how the customer can receive a refund after an accidental renewal
• Refunds: Microsoft will contact existing customers on recurring 12-month contracts and give them the option to end their contract and claim a pro-rata refund
• Inactive memberships: Microsoft will also contact existing customers who haven't used their memberships for a long time but are still paying. These customers will be reminded how to stop payments, and if they continue not to use their memberships, Microsoft will ultimately stop taking further payments
• Better information about price increases: Microsoft will give clearer notifications of any future price rises, and will ensure people know how to turn off auto-renewal if they don't want to pay the higher price.

Michael Grenfell, the CMA's Executive Director of Enforcement, noted: "Other companies offering memberships and subscriptions that auto-renew should take note, and review their practices to ensure they comply with consumer protection law."

The CMA's investigation will continue and we will likely see similar changes made by both Sony and Nintendo in a matter of time.

While these changes are clearly welcome, it isn't clear whether Microsoft will apply the same changes outside the UK.

Microsoft is changing how it runs Xbox Live Gold and Game Pass subscriptions

UPDATE 28/1/21: Microsoft has now said that the changes to Xbox Live Gold and Game Pass agreed with the UK's Competitio…

www.eurogamer.net

 

[Soodanim]

Nice to see. I wonder if they will change their practices everywhere off the back of this, or if they'll continue to be ruthless everywhere else

 

[Amorous Biscuit]

More transparency is only a win for the consumer. Though I can't see MS enact this across every market.

 

[DonDonDonPata]

it'd be easy to laugh and say "haha Game Pass best deal in gaming amirite?!" but these regulations seem like petty crap to me. I mean, sadly it will become the way of the future as everything gets pushed to a subscription. Naturally, the dullards will cry and say "bu bu but what do you mean I signed up for a subscription and then your system charged me for the next period of the subscription without asking me twice and calling my personal phone number REEEEEEE ANTICONSUMER!!"

I deal with these sort of customers on a regular basis. And of course all this does is put more power into the hands of bureaucrats and gov't officials. Horray.

 

[Grinchy]

More transparency is only a win for the consumer. Though I can't see MS enact this across every market.

Hell no they won't. No company with a subscription service will ever enact these changes unless they are legally forced to. Auto-renewal is probably the lion's share of all subscription money coming in for any service.

There are a ton of people out there who sign up for free or $1 "trials" and have no idea that they are about to pay the full-priced yearly subscription when it auto-renews. And that's why those trials exist. And then there are all the people who just aren't willing to micromanage things and won't subscribe and unsubscribe from things they aren't using regularly. There's way too much money in the average idiot to help them not be stupid.

 

[Frito_Pendejo]

I've only signed up for game pass when the deals are available. First time I did the $1 deal for two years and this second time I let my live subscription run out, re-upped it for 3 years and then did the $15 thing to convert it all to Gamepass. I like buying games so once these deals no longer exist I'll no longer have a use for Gamepass.