Microsoft has been ordered by the UK Competition and Markets Authority to offer refunds to any Xbox Game Pass customers who have accidentally paid for yearly subscriptions through the auto renewal feature.
“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,” the company stated.
“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. 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.”
In addition, 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.”
These changes were legislated in the UK, but Microsoft will be rolling these changes out globally.
“Other companies offering memberships and subscriptions that auto-renew should take note, and review their practices to ensure they comply with consumer protection law,” says Michael Grenfell, executive director of enforcement at the CMA.
