Australia is taking legal action against Microsoft for allegedly misleading consumers regarding price increases for Microsoft 365 Personal and Family subscriptions related to AI features.
The Australian Competition and Consumer Commission (ACCC) claims that approximately 2.7 million Australians were misled by these price hikes, which occurred in November 2024 with the introduction of Copilot features to Microsoft 365 plans.
We’re concerned that Microsoft’s communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price.
According to the ACCC, consumers could have maintained their current pricing by switching to new “classic” plans, but many may not have been aware of this option.
Author's summary: Australia sues Microsoft over misleading price hikes.