Legal action has been initiated against Microsoft by Australia’s consumer protection agency regarding the integration of their AI-powered Copilot into Microsoft 365 subscriptions.
The Australian Competition and Consumer Commission (ACCC) contends that the tech giant provided misleading information to subscribers during the rollout, which included a price increase.
According to the ACCC’s claims, approximately 2.7 million subscribers were presented with what appeared to be only two options: accept the updated Microsoft 365 plans, now bundled with Copilot and carrying a higher price tag, or terminate their subscriptions.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
ICO vs IDO vs IEO: Which One’s the Best? (Easily Explained)
However, the regulatory body asserts that this presentation was incomplete. They allege a third alternative, the “Classic” plan, which provided the original Microsoft 365 service without Copilot at its previous, more affordable rate, was intentionally obscured.
Subscribers allegedly had to navigate a complex series of steps within their account settings, essentially initiating a cancellation process, before being presented with the option to downgrade to the less expensive Classic plan.
The alleged actions occurred after Microsoft updated its Microsoft 365 personal and family plans on October 31, 2024. The ACCC stated that its investigation was triggered by both direct complaints from customers and online discussions on platforms like Reddit, where users shared methods for accessing the hidden Classic plan.
Gina Cass-Gottlieb, Chair of the ACCC, stated in a public announcement that Microsoft failed to adequately disclose all available choices to subscribers, withholding crucial information.
In related news, Eliza Labs, developers of the ElizaOS system, recently filed a lawsuit against the social media giant X. Learn more about the details of the claim here.