Microsoft faces allegations that it misled Australian customers about its office suite pricing, particularly those using AI add-ons like Copilot. The company allegedly failed to disclose a third option: paying the same lower price without AI features.
In October 2024, Microsoft increased prices for its Office 365 plans by 45%, with Copilot included. However, according to Australia’s consumer watchdog, the ACCC, Microsoft only presented two options: pay more or cancel. The regulator alleges this information was false or misleading, as a lower price option without AI features existed.
Consumers were not informed about this third option when they initially signed up for the service, and it became available only when subscribers began cancelling their plans. The ACCC claims Microsoft deliberately omitted mention of these classic plans in its communications to increase the number of consumers on more expensive Copilot-integrated plans.
Source: https://www.theguardian.com/australia-news/2025/oct/27/microsoft-sued-allegedly-misleading-millions-australians-ai-pricing-ntwnfb