The ACCC says Microsoft nudged people into pricier plans after bundling its AI assistant.
The Australian Competition and Consumer Commission has launched a complaint against Microsoft, alleging that they misled around 2.7 million customers in October 2024 by insinuating that they needed to upgrade to higher-priced Microsoft 365 personal and family plans with Copilot.
According to the ACCC, annual pricing increased 45% for the Personal plan to A$159 and 29% for the Family plan to A$179, while a cheaper “classic” plan without Copilot was only discovered after the cancellation process.
The regulator is pursuing penalties and customer restitution. Microsoft said it is reviewing the claim.
What this means for creators
If you’re on Microsoft 365, check your renewal plan for a cheaper non-Copilot option.
Regulators are closely monitoring how AI features are combined, so expect clearer disclosures throughout the industry.
Also Read: OpenAI’s New AI Music Generator: Instant Tracks for Videos and Remixes
What this means for entrepreneurs
Transparent pricing for AI functionality is essential. Create clear upgrade pathways and comparisons in plain English.
If you sell in Australia (or want to), align your pricing and cancelation UX with local consumer law to avoid problems.
Humain, a Saudi AI business, has built a large data center and developed its own AI operating system, as reported by AI News Today.
