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Microsoft Apologizes to 2.7 Million Australian Users for Misleading AI Subscription Plans
Microsoft 365 Plan Controversy: Tech giant Microsoft has apologized to approximately 2.7 million customers in Australia. The company is accused of misleading users about the pricing and options of the AI version of its Microsoft 365 subscription.
Tech giant Microsoft is making headlines once again. The company has publicly apologized to over 2.7 million customers in Australia. The matter relates to subscription plans for Microsoft 365 that recently added the AI feature Copilot.
The Australian Competition and Consumer Commission has charged Microsoft with misleading consumers during the renewal of subscriptions. The Commission said the company, from October 31, 2024, told users they would either have to accept the new AI-enabled plans or cancel their subscriptions.
These new plans had much higher prices than before. Microsoft 365 Personal Plan jumped 45% from AUD 109 to AUD 159, while the price for the Family Plan increased by 29%, from AUD 139 to AUD 179. However, the ACCC says that Microsoft did not inform users that they could continue with the old Classic plan without AI, which remained priced the same. This option only became available when a customer initiated the cancellation process.
