"Microsoft has publicly acknowledged its poor communication to subscribers to some of its productivity-software-as-a-service packages after forcing them to accept a price increase tied to its AI-assistant service Copilot being bundled into its Microsoft 365 Personal and Family offerings in Australia and New Zealand. It gave those affected eight weeks to apply for a refund of the amount they were overcharged."
"Microsoft's move came days after the Australian Competition & Consumer Commission (ACCC) threatened to take Microsoft to court, alleging that the company misled around 2.7 million Australian users of Microsoft 365 Personal and Family software by forcibly upgrading them to a higher-priced plan including Copilot AI features on renewal, and not clearly disclosing the existence of a cheaper version, "Classic," without the new Copilot AI features at the price they were previously paying. The company faces potential penalties of up to A$50 million ($33 million)."
Microsoft acknowledged poor communication after forcing some Microsoft 365 Personal and Family subscribers in Australia and New Zealand to accept a price increase tied to bundling Copilot AI. The company gave affected users eight weeks to apply for refunds of overcharged amounts. The change affects Australian consumers and may strengthen enterprise resistance to AI-linked price increases. The Australian Competition & Consumer Commission threatened legal action, alleging around 2.7 million Australian users were misled by involuntary upgrades and lack of clear disclosure of a cheaper "Classic" plan. Microsoft faces potential penalties up to A$50 million and began emailing and posting an apology to subscribers.
Read at Computerworld
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