<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Microsoft Australia is facing court action for allegedly misleading 2.7 million Australians into buying a more expensive 365 subscription plan that included its AI bot "Copilot".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian Competition and Consumer Commission (ACCC) today announced it has launched proceedings in the federal court against the company over allegedly false or misleading communication.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In October last year Microsoft sent two emails and published a blog post telling users who had automatic pay renewal for their Microsoft 365 Personal and Family plans that they had to accept the integration of Copilot and pay higher prices to maintain their subscription, or cancel.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/australia-children-scam/93f78227-0c1a-4e80-8688-750c3035b7a8" rel="" target="_blank" title=""><strong><span>The concerning data that shows scammers are targeting Aussie kids</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The ACCC alleged Microsoft provided false or misleading information because it failed to mention that users had a third option of keeping their existing plan, without Copilot, at the lower price under the classic plan.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Users allegedly only received the option of moving to a classic plan late in the cancellation process.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This meant users who did not cancel saw the annual price for the personal plan jump 45 per cent from $109 to $159, and 29 per cent from $139 to $179 for the family plan.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/microsoft-australia-365-personal-and-family-plans-australian-competition-and-consumer-commission-federal-court-action/47a2864d-78f4-4413-9b6c-f59fc9fddb85" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/labor-rules-out-ai-copyright-carveout-for-big-tech-companies/416c5a25-3ea8-43cb-98c5-48844846a7b6" rel="" target="_blank" title=""><strong><span>Labor rules out AI copyright carveout for big tech companies</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ACCC Chair Gina Cass-Gottlieb alleges Microsoft "deliberately" failed to mention the classic plan and "concealed" its existence to increase the number of users on the more expensive Copilot-integrated plans.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The Microsoft Office apps included in 365 subscriptions are essential in many people's lives, and given there are limited substitutes to the bundled package, cancelling the subscription is a decision many would not make lightly," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We're concerned that Microsoft's communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We believe many Microsoft 365 customers would have opted for the Classic plan had they been aware of all the available options."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Microsoft 365 Personal and Family plans include Word, Excel, PowerPoint and OneNote, apps like Outlook, Teams and SharePoint and cloud services through OneDrive.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/murderer-to-come-face-to-face-with-family-of-victim/7f40dd9b-45da-4287-a636-58a8e4b91d43" rel="" target="_blank" title=""><strong><span>Murderer to come face-to-face with victim's family</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The ACCC case does not relate to Microsoft 365 Business or Enterprise plans. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Following an investigation prompted by tip-offs and Reddit posts, the consumer watchdog believes millions of Australians have suffered economic harm.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The ACCC is seeking orders including penalties, injunctions, declarations, consumer redress, and costs in court.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Corporations in breach of consumer law could face a maximum penalty of $50 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>9news.com.au has contacted Microsoft Australia for comment. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank" title=""><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div>