Home Business & Finance Sony and Nintendo Announce Changes to Auto-Renewal Policies

Sony and Nintendo Announce Changes to Auto-Renewal Policies

If you’ve ever signed up for a subscription, then you might be familiar with the nightmare of auto renewals. It’s pretty common to hear about automatic renewals from subscribers who forgot the renewal date or forgot about the subscription entirely. As a result, the UK’s Competition and Markets Authority (CMA) took action that directly addresses the issue for video game subscription services.

Earlier this week, Sony and Nintendo agreed to take new steps to ensure that the users aren’t faced with random charges. Both companies are following the same steps announced by Microsoft back in January.

In order to comply with the possible recurring charges, Sony has revealed that it will start sending reminders to PlayStation Plus subscribers still making payments after a year of inactivity. In these notifications, the company will instruct the customers how to cancel the subscription. And after two years of inactivity, the company will turn off recurring billing entirely.

Although Nintendo hasn’t taken the same steps, it took actions to address the possible issues with recurring charges. As a result of the investigations, the automatic-renewal is disabled by default for new Nintendo Switch Online subscribers now.

The CMA opened the latest case back in 2019 under suspicion that refund, and auto-renewal policies for game subscription services were unfair. As all of the console manufacturers have addressed the situation, the CMA has closed the investigation.

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