Ukie claims ‘restrictive’ subscription proposals could harm game businesses in the UK

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UK video game industry trade body Ukie has called on the Labour government to clarify how new consumer subscription refund proposals will impact video game companies operating in the United Kingdom.

This week, UK Prime Minister (PM) Andy Burnham announced plans to implement a series of “everyday fixes” to help people dealing with the cost of living crisis. That includes a proposal designed to counter what the PM described as “subscription traps” that make it difficult for people to cancel subscriptions and contracts that renew at higher costs.

As part of that plan, the government said it will make it easier for people to exit subscription contracts without incurring extra charges by allowing them to make use of a new 14-day cooling off period that will let consumers cancel after a trial or long-term contract has renewed.

In response, Ukie has asked the government to clarify how those refunds will be calculated over concerns it could allow those who make use of video game subscriptions such as Xbox Game Pass to access and consume content that exceeds the value of a refund.

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“UK games businesses need clarity in how this is going to be calculated. Subscriptions provide real benefits and value to consumers, but a narrow and restrictive method in calculating refunds could see players cancel within their renewal period having gained access and consumed content that far exceeds the value of the refund,” reads a statement from Ukie.

“Without flexibility and clarity from Government, these changes could discourage investment in subscription products and create financial exposure for businesses.”

The fear, it seems, it that consumers could take advantage of that 14-day window to access content available through video game subscriptions—sinking hours into titles or completing them outright—before securing a refund.

As a result, Ukie has asked the government to bring forward guidance for business that could be impacted by the proposals so they can adapt their processes accordingly.

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