Competition investigation into gaming companies

children playing nintendo switch
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Are the auto-renewal terms for Nintendo Switch, PlayStation and Xbox unfair?

The Competition and Markets intends to find out after launching a consumer law investigation into the subject.

The consumer body said it was concerned about whether some of these companies’ business practices are legal, such as their use of auto-renewals for online gaming contracts, their cancellation and refund policies, and their terms and conditions.

As well as buying consoles and games, people can pay for online services, such as playing against other gamers, communicating with other players, and extra games.

These services can involve a membership, often on an auto-renewal basis which means that money will be automatically taken from a person’s account as the membership rolls over, the CMA said.

The CMA has written to Nintendo Switch, PlayStation and Xbox requesting information about their online gaming contracts to help better understand their practices.