""The ACCC alleges that since 31 October 2024, Microsoft has told subscribers of Microsoft 365 Personal and Family plans with auto-renewal enabled that to maintain their subscription they must accept the integration of Copilot and pay higher prices for their plan, or, alternatively, cancel their subscription," the ACCC said in a statement. "This information provided to subscribers was false or misleading.""
""Australia's competition regulator is suing Microsoft and its Australian subsidiary for allegedly misleading approximately 2.7 million customers about Microsoft 365 Personal and Family subscription options when it integrated Copilot AI. The case raises stark transparency questions for enterprise customers, as CIOs increasingly look to include "AI transparency clauses" in renewal contracts to prevent similar price shocks tied to automation features. Microsoft faces potential penalties of up to $33 million (A$50 million) for the breach.""
The Australian Competition and Consumer Commission (ACCC) is suing Microsoft and its Australian subsidiary for allegedly misleading about Microsoft 365 Personal and Family subscriptions after integrating Copilot AI. The ACCC alleges approximately 2.7 million customers with auto-renewal were told they must accept Copilot and pay up to 45% more or cancel, while a cheaper option to retain existing features at prior prices was concealed. Microsoft faces potential penalties up to A$50 million (about $33 million). The dispute has prompted enterprise concerns, with CIOs seeking AI transparency clauses in contracts to prevent forced AI upgrades and unexpected price increases.
Read at Computerworld
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