ACCC lawsuit triggers Microsoft’s rethink and apology on Copilot subscription communications
ACCC pressure prompts Microsoft refunds and clearer Classic options.
Microsoft apologised after Australia’s regulator said it steered Microsoft 365 users to pricier Copilot plans while downplaying cheaper Classic tiers. The move follows APAC price-rise emails and confusion over Personal and Family increases.
ACCC officials said communications may have denied customers informed choices by omitting equivalent non-AI plans. Microsoft acknowledged it could have been clearer and accepted that Classic alternatives might have saved some subscribers money under the October 2024 changes.
Redmond is offering affected customers refunds for the difference between Copilot and Classic tiers and has begun contacting subscribers in Australia and New Zealand. The company also re-sent its apology email after discovering a broken link to the Classic plans page.
Questions remain over whether similar remediation will extend to Malaysia, Singapore, Taiwan, and Thailand, which also saw price hikes earlier this year. Consumer groups are watching for consistent remedies and plain-English disclosures across all impacted markets.
Regulators have sharpened scrutiny of dark patterns, bundling, and AI-linked upsells as digital subscriptions proliferate. Clear side-by-side plan comparisons and functional disclosures about AI features are likely to become baseline expectations for compliance and customer trust.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
