Microsoft is facing a lawsuit from the Australian Competition and Consumer Commission (ACCC) for allegedly misleading 2.7 million users over AI-driven Microsoft 365 price hikes.
The ACCC claims that Microsoft informed users that their 365 Personal and Family plans would automatically include Copilot, resulting in a significant price increase. The annual cost of the Personal plan rose by 45%, from A$109 to A$159, while the Family plan increased by 29%, from A$139 to A$179.
Regulators say that while Microsoft promoted these upgraded plans, it failed to clearly disclose that a cheaper "classic" version without Copilot was still available.
Author's summary: Australia sues Microsoft for misleading consumers.