Subscription-based models save consumers money, provide predictability and allow customized gameplay experiences.
ESA believes consumers should be permitted to use the services that best meet their needs to access video games. Allowing regulatory flexibility for such offerings will enhance consumer choice.
Video game players are tech-savvy. They value and demand the ease of auto-renewal options. These subscriptions provide consumers with easy access to digital products and services on a regular interval basis.
ESA members provide clear disclosures for subscriptions, obtain informed consent and allow consumers to cancel services easily. Proposals that mandate companies to adhere to overly prescriptive processes put subscription services at risk and could ultimately remove many of the benefits that consumers currently receive and enjoy.
Existing federal law already enables enforcement actions to protect consumers.
Federal Trade Commission Act, 15 U.S.C. §§ 41-58, gives the U.S. Federal Trade Commission (FTC) enforcement authority to bring actions against parties who fail to make adequate disclosures, bill consumers without their consent or make cancellation unnecessarily difficult.
Restore Online Shoppers’ Confidence Act, 15 U.S.C. §§ 8401-8405, requires that online retailers (1) provide a clear and conspicuous disclosure of material terms of an offer; (2) obtain express informed consent to the offer; and (3) provide an easy-to-use method of cancellation.
Evolving Technology Demands Regulatory Flexibility
Subscription arrangements can vary based upon the type of service and consumer preferences. That is why a one-size-fits-all regulatory approach would be unworkable across the various models. Some of the types of practices video game companies support and employ include:
Clear and Conspicuous Disclosures. The video game industry supports communicating essential information and highlighting key terms to consumers. (Overly prescriptive requirements for implementing “clear and conspicuous” disclosures are impractical and unreasonable)
Informed Consent. Prior to entering into any subscription service contract, the industry provides consumers with relevant information. This includes clear and conspicuous disclosures of material information—such as costs, billing frequency, cancellation policy and consumer obligations—in visual proximity to the request for consent.
Reminder Notices and Easy-to-Use Cancellation Methods. Reminding consumers of their upcoming charges, where the contract is greater than 12 months in duration, and the opportunity to cancel a contract within appropriate and reasonable time frames is a positive approach to consumer service and good business practice.
