Microsoft in court for allegedly misleading Australians over 365 subscriptions
6 months ago
- #Microsoft
- #ACCC
- #Consumer Rights
- ACCC sues Microsoft for allegedly misleading 2.7M Australian customers about subscription options and price increases after integrating Copilot into Microsoft 365 plans.
- Microsoft allegedly failed to disclose a third option—Classic plans—allowing users to keep existing features at lower prices without Copilot.
- The Classic plan was only revealed during the cancellation process, not in initial communications.
- Price increases: Personal plan up 45% ($109 to $159), Family plan up 29% ($139 to $179).
- ACCC claims Microsoft's emails and blog post were misleading by omitting the Classic plan option.
- ACCC seeks penalties, injunctions, declarations, consumer redress, and costs.
- Microsoft's communications allegedly denied customers the chance to make informed decisions about their subscriptions.
- Consumer harm cited as automatic renewals at higher prices without awareness of cheaper Classic option.
- ACCC's case focuses on Personal and Family plans, not business or enterprise subscriptions.
- Maximum penalties for breaches could be up to $50M or 30% of Microsoft's adjusted turnover during the breach period.