The Competition and Markets Authority (CMA) has launched an investigation to determine whether Sony, Microsoft and Nintendo’s online gaming contracts are breaching consumer protection laws.
The UK competition watchdog says it’s concerned about the legality of some of elements of the companies’ business practices, such as their use of auto-renewals for online subscription services, their cancellation and refund policies and their terms and conditions.
The CMA has written to the platform holders requesting information about their practices to assist its investigation. It has also called on consumers who usePlayStation,XboxandNintendoonline services toget in touch with itto share their experiences.
It said its investigation will focus on several issues including:
If the CMA finds any of the companies’ practices to be misleading or their terms to be unfair, it could take enforcement action.
CMA chief executive Andrea Coscelli said: “Roll-over contracts are becoming more and more commonplace and its essential that they work well for customers.
“Our investigation will look into whether the biggest online gaming companies are being fair with their customers when they automatically renew their contracts, and whether people can easily cancel or get a refund.
“Should we find that the firms aren’t treating people fairly under consumer protection law, we are fully prepared to take action.”
Sonyrecently introduced a newPlayStation Store refund policygiving users 14 days to cancel theirPS4digital purchases.
The new terms cover pre-ordered content, as well as released games and DLC that players have not yet started to download or stream.
