Microsoft Sued for Misleading Subscriptions

Source: Cyber Security News

The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft, accusing the company of deceiving approximately 2.7 million customers regarding subscription options for Microsoft 365. The central issue revolves around Microsoft’s failure to disclose the availability of lower-priced Microsoft 365 Personal and Family Classic plans when integrating its AI assistant Copilot into the subscription offerings. The ACCC argues that Microsoft’s communication is misleading, as it presented consumers with only expensive Copilot plans or the option to cancel their subscriptions altogether, thus omitting important alternatives that could have saved users money.

The price increases associated with the Copilot integration were significant: Personal subscriptions rose from $109 to $159 annually, a 45 percent increase, while Family plans jumped from $139 to $179, or a 29 percent increase. As a result of these escalated costs, numerous consumer complaints led to the ACCC investigating Microsoft’s communication practices. The regulator alleges that by not appropriately mentioning the Classic plans, Microsoft intentionally misled consumers and inflicted economic harm. The ACCC seeks various legal remedies, including consumer redress and penalties against Microsoft for violations of Australian Consumer Law.

👉 Pročitaj original: Cyber Security News