Norton extends refund rights after CMA action
The CMA has secured extended refund rights for all customers of anti-virus firm Norton whose contracts auto-renew, just weeks after McAfee made a similar commitment.
Norton gave the formal commitment as part of the Competition and Markets Authority’s (CMA) wider investigation into auto-renewing contracts in the anti-virus software sector. This identified a number of concerns in relation to Norton’s automatically renewing contracts, which could result in customers paying for services they no longer want or need.
The CMA announced in March that it was taking legal action against Norton after it refused to provide outstanding information to assist with its investigation. This was the first time the CMA had needed to take this step in a consumer protection case. As a result of Norton’s commitments, the CMA will apply to the court for this legal action to be discontinued.
Norton has agreed to make the changes necessary to address the CMA’s concerns. These include:
- ensuring that customers whose contracts auto-renew for another year will be able to end their contracts and seek refunds for the remaining months. In addition, this new refund right will be backdated for people who were previously refused a refund in 2020
- agreeing to contact customers who have not used their products for over 12 months, to let them know how they can disable automatic renewal or end their contract and get a refund
- providing clearer information upfront on pricing, for example by making it clear if the auto-renewal price in the second year is higher than the price paid when the anti-virus product was first purchased
- automating the process for obtaining a refund to make it simple and easy for customers
Andrea Coscelli, CMA Chief Executive, said:
“The changes Norton has committed to, following our action, will make it easier for customers to get their money back if their contract renews when they don’t want it to.
“Coming just weeks after the commitments secured from McAfee, it also sends a clear message that the CMA will not hesitate to take action where it believes companies are using auto-renewals unfairly.
“We’re pleased that Norton’s commitments mean we no longer need to go to court to enforce our information request. However, firms should be in no doubt that we are ready to take this action in the future, if they fail to provide the information we need to pursue our investigations.”
More information can be found on the anti-virus software sector investigation case page.
Notes to Editors
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The CMA opened its investigation into the anti-virus software sector in November 2018. The investigation into the sector was launched in response to the loyalty penalty ”super-complaint” from Citizens Advice about long term customers overpaying for key services. This raised concerns that some anti-virus software companies’ terms and practices may be unfair and could result in UK customers paying for services they no longer want or need. The CMA’s investigation was conducted under the Enterprise Act 2002.
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In relation to Norton, the CMA’s investigation has been concluded with the CMA accepting undertakings from NortonLifeLock Ireland Limited and NortonLifeLock UK Limited. These undertakings have been provided to the CMA voluntarily and without any admission of wrongdoing or liability.
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Norton’s existing refund policy covers customers whose contracts have already been auto-renewed by allowing them to request a full refund of the auto-renewal fee for a period of 60 days from the date the fee is taken. Following the CMA’s action, after this full refund window, consumers can seek a partial refund of the auto-renewal fee in proportion to the amount of the contract that is outstanding at the point at which the refund is requested. This will be calculated on a monthly basis. The request for a partial refund can be made until the end of the penultimate month of the contract period covered by the fee.
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Norton has agreed to make further changes to their website and communications with customers to improve clarity and make it more straightforward to obtain a refund, which will be made within the coming months. Norton will provide regular reports to the CMA as to their customers’ experience of ending auto-renewal and seeking refunds.
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Although the CMA can raise concerns around a breach of consumer protection law, ultimately, only a court can rule that a particular practice infringes the law and no such ruling has been made in this matter.
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More information on the CMA’s application to court to compel Norton to produce certain information in connection with the CMA’s investigation can be found here. Norton raised various legal arguments as to why it considered it did not have to provide this information, which the CMA did not agree with. Because the CMA is now applying to withdraw its application, these arguments will not be decided in this case.
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More information on the changes made by McAfee Ireland Limited secured by the CMA can be found here.
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For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.