Microsoft faces legal action for alleged Copilot subscription deception
The regulator claims Microsoft’s emails and blog post falsely implied users had to accept pricier Copilot subscriptions or cancel.
The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Microsoft Australia and its parent company. The regulator alleges Microsoft misled 2.7 million Australians over Microsoft 365 subscription changes after adding its AI assistant, Copilot.
The ACCC says Microsoft told subscribers to accept higher-priced Copilot plans or cancel, without mentioning the cheaper Classic plan that kept original features. Customers could only discover this option by starting the cancellation process.
ACCC Chair Gina Cass-Gottlieb said Microsoft deliberately concealed the Classic plan to push users onto more expensive subscriptions. She noted that Microsoft 365 is essential for many and that customers deserve transparent information to make informed choices.
The regulator believes many users would have stayed with their original plans if they had known all the options.
The ACCC is seeking penalties, injunctions, and redress, claiming millions faced financial harm from higher renewal charges. The case underscores the regulator’s focus on protecting consumers in the digital economy and ensuring fair practices by major technology firms.
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