ACCC Takes Microsoft to Court
The Australian Competition and Consumer Commission (ACCC) alleges that Microsoft misled approximately 2.7 million Australian customers into paying more for Microsoft 365 subscriptions.
The issue arose after Microsoft introduced Copilot AI features, and the ACCC claims that the company did not clearly communicate all personal and family plan options.
- The price of an individual annual Microsoft 365 subscription increased from $109 to $159, a more than 45% increase.
- However, customers could retain a $109 annual subscription without Copilot features, called "Microsoft 365 Personal Classic", by attempting to cancel their subscription.
The ACCC alleges that customers were misled into paying more for Microsoft 365 subscriptions with the inclusion of Copilot.
Author's summary: ACCC sues Microsoft over misleading subscription practices.