Nintendo is facing an interesting situation when it comes to their EULAs.
Before the launch of the Switch 2, Nintendo updated their Nintendo Account User Agreement. To be clear, this is not the EULA for using the Switch 2, or for that matter, the original Switch. This specifically refers to the account system that consumers can use to use Nintendo’s online services, including tying their account to their digital game purchases, availing of Nintendo Switch Online and its entitlements, using Nintendo mobile apps with the Switch and Switch 2, etc.
As we reported, these changes drew interest because Nintendo added language claiming that they were willing to revoke account access and even brick your system if you did not follow the terms of this agreement. Other provisions in the updated agreement stated that users were not allowed to hack or mod, not their consoles, but the Nintendo Account Systems.
After the Switch 2 launched, users who tried to use the MiG Switch with their Switch 2 found that Nintendo banned them from using online services. Their consoles were not bricked because of this, but we learned then that Nintendo has tools in place to figure out that you were using hacking and modding devices. It seems that they may even be able to identify what specific actions you were attempting to do.
That takes us to today, as Nintendo faces a new legal challenge in Brazil. As reported by Dexerto, Brazilian consumer protection agency Procon-SP sent notice to Nintendo that their Nintendo Account System User Agreement violates consumer protection laws. As excited as some gamers are to share this news, we need to clarify that this is, in fact, NOT a lawsuit. We’ll go through some details below.
As described by the Worldwide Consumer’s Association on their website, Procon-SP is “a civil association nationwide, multidisciplinary, non-profit institution linked to the Department of Justice and Defense of Citizenship of the State of São Paulo and has legal personality under public law with technical autonomy, administrative and financial.” So they do consumer protection, but they operate a little differently than the UK’s CMA, or the US’ FTC.
In this case, Procon-SP seems to have an even bigger problem with Nintendo than the clauses on their license agreements. As reported on TheGamingEra, Procon-SP’s Álvaro Camilo pointed out that Nintendo’s lack of an official presence in Brazil is itself harmful to their consumer rights. They apparently kept extending the original 48 hour deadline for Nintendo to respond to their communication, because they couldn’t connect with someone from Nintendo to respond to their request.
TheGamingEra and Dexerto both reported that Nintendo has acquired the services of a local law firm, but only to address this single issue. We expect, beyond any potential changes to these clauses, that Procon-SP will convince Nintendo to officially set up shop in Brazil. In fact, it may become a condition to the company being allowed to offer their services to the country. While Brazil can’t stop the grey market from selling Switch 2 consoles, they could take action to block online services themselves.
As you can see from this Reddit from five years ago, Nintendo’s lack of presence in Brazil is already giving Brazilian gamers a terrible experience. There’s a messy older history of Nintendo pulling back from entering Brazil years ago, but that could all become irrelevant if this becomes the driving force to finally compel Nintendo to officially do business in the country.
