Last April, the Competition and Markets Authority (CMA) initiated an investigation into roll-over contracts for online gaming.
The online gaming sector has grown exponentially in recent years, with at least one console a staple in most modern houses these days, I would assume. The monetisation of online gaming has led to more purchase options for the consumer, so the costs of being involved in online gaming is something that should be carefully considered.
In the same way that the CMA has been looking into contract factors for things like broadband and telecommunications, they’re also keen to know if the online gaming sector is being fair. As this is just the initial investigation stage, no assumptions are being made as to whether important laws are being broken or not.
About the investigation into roll-over contracts for online gaming
The CMA’s investigation into roll-over contracts for online gaming commenced in April 2018 and remains in its infancy in terms of how far things have gone.
The CMA is looking into whether some of the business practices concerning online gaming contracts is legal. Concerns have been raised about memberships and how they’re managed and how they may roll-over.
Specifics that the CMA is keen to look at include:
- Auto-renewals;
- Cancellations;
- Refund policies;
- General terms and conditions.
The gaming platforms that have been asked for information by the CMA are three of the main, big players in the sector:
- Nintendo Switch;
- PlayStation;
- Xbox.
The consumer’s input
At the heart of their investigations into roll-over contracts for online gaming is the consumer.
As such, their input is vitally important.
The CMA has made clear that they’re interested to hear from gamers about their experiences to help them make their determination at the end of the investigation. They’ve asked consumers for information that includes their views on:
- How fair contract terms are, and whether there’s discretion to change the deals they have;
- How easy it is to cancel their membership and obtain refunds, and whether there are any specific factors that can make this difficult;
- How fair the renewal processes are, and whether people are fully aware that they may be subjected to auto-renewal contracts, and whether they’re reminded about this.
An important investigation
When you consider the nature of the consumers that may be subject to roll-over contracts for online gaming, you can see why this is an important matter to investigate.
We’re likely talking about younger people, many of whom may not even consider the finer terms and conditions of what they’re entering into. There may be minors who have permission to have accounts from their parents and guardians and, although it should be the adults checking these things, is that really the case?
There appears to be several unknowns, and in a market of its size and growth potential, the CMA’s investigation into this is important. Hopefully, everything will be above board and there will be no problems found. But, if the CMA is even able to improve things just a little bit – if it’s required – then we should all see the positives in this.