Microsoft is being taken to court docket by Australia’s client regulator over the way it launched its AI instrument, Copilot, into Microsoft 365 subscriptions.
The Australian Competitors and Client Fee (ACCC) claimed that the corporate gave deceptive data to customers when it rolled out the characteristic with a worth enhance.
The ACCC acknowledged that round 2.7 million customers had been advised they’d two decisions: settle for the up to date Microsoft 365 plans, which included Copilot and got here with greater prices, or cancel their subscriptions.
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Nonetheless, the regulator argued that this was not the entire image. A 3rd possibility, referred to as the “Traditional” plan, supplied the unique service with out Copilot at an earlier, cheaper price.
As an alternative, individuals needed to undergo a number of steps of their accounts to seek out the Traditional plans. They needed to start the cancellation course of earlier than being proven the choice to modify to the cheaper model.
The alleged conduct happened after Microsoft up to date its private and household 365 plans on October 31, 2024. The ACCC stated it started investigating after receiving buyer studies and noticing discussions on Reddit during which customers shared tips on how to discover the hidden Traditional possibility.
In a public assertion, ACCC Chair Gina Cass-Gottlieb stated that Microsoft ignored necessary particulars and didn’t inform subscribers about all their decisions upfront.
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