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

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Gym_Lion

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#1 Gym_Lion
Member since 2020 • 2592 Posts

Microsoft is changing how it runs Xbox Live Gold and Game Pass subscriptions • Eurogamer.net

From Eurogamer

'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.'

Great to see.

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TheEroica

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#2 TheEroica  Moderator
Member since 2009 • 22735 Posts

Looks like Auto-renewel is an issue to address for all three companies....

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Nonstop-Madness

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#3  Edited By Nonstop-Madness
Member since 2008 • 12319 Posts

You'd be surprised how many people keep paying subscription fees even though they don't use it.

There's literally a whole strategy in subscription businesses where you purposely don't bother users that are inactive but pay. It's free money. They'll either leave once they realize it or, just end up using it again. lol Nobody blames the business in that case either.

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regnaston

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#4 regnaston
Member since 2008 • 4681 Posts

@TheEroica said:

Looks like Auto-renewel is an issue to address for all three companies....

It is the first thing I turn off. Even if I want to subscribe longer than the initial period, there are always better deals than the auto-renew

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lamprey263

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#5 lamprey263
Member since 2006 • 44589 Posts

So in other words Sony and Nintendo are not and continue with their anti-consumer practices 😉

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SecretPolice

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#7 SecretPolice
Member since 2007 • 44138 Posts

You're probably a rummy if you don't know how to turn off auto renewal but eh, from what I see these dayzzz.

This has become real life...

All is just about lost. lol :P

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firedrakes

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#8 firedrakes
Member since 2004 • 4381 Posts

@TheEroica said:

Looks like Auto-renewel is an issue to address for all three companies....

i know any time you did a firmware update on ps4(not sure with 5). if you had auto renewal off. when you did firmware update. it would turn it back on. with out telling you. and sony psn support knows about it. seeing i had to call them up due to it renewing 3 days early.

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Archangel3371

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#9 Archangel3371
Member since 2004 • 44265 Posts

Sounds like some good stuff. I always turn off auto renewal myself.

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OniLordAsmodeus

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#10  Edited By OniLordAsmodeus
Member since 2010 • 381 Posts

This should be a thing across the board for ALL subscription services, not just gaming. I'd appreciate something like this for gym memberships, TV subscriptions...everything.

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HalcyonScarlet

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#11 HalcyonScarlet
Member since 2011 • 13668 Posts

Hopefully Sony does the same. Accidentally got another year of PSNow on the PC and it kind of sucks.

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shellcase86

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#12 shellcase86
Member since 2012 • 6851 Posts

@gym_lion said:

Microsoft is changing how it runs Xbox Live Gold and Game Pass subscriptions • Eurogamer.net

From Eurogamer

  • 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

What's a "long time" and who defines that? The same org?

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lamprey263

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#13 lamprey263
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@OniLordAsmodeus: "This should be a thing across the board for ALL subscription services, not just gaming."

So true.

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lamprey263

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#14 lamprey263
Member since 2006 • 44589 Posts

@SecretPolice: "You're probably a rummy if you don't know how to turn off auto renewal but eh, from what I see these dayzzz."

I think some people get in a limbo where they keep telling themselves they'll make an effort to use a service or know they want to cancel but never get around to it and keep putting it off because the next monthly recurring charge is nominal (though in totality adds up).

Think most people are on guard for this... also maybe why so many people also fall victim to those calls claiming their Amazon Prime membership auto renewed and they follow steps to initiate refunds and end up getting their bank accounts drained.