Overview
- Microsoft emailed Microsoft 365 Personal and Family subscribers to acknowledge unclear communications and to outline non‑AI 'Classic' plans.
- Eligible customers who switch to Classic before the end of 2025 are being offered refunds dating back to payments made after November 30, 2024.
- The ACCC alleges auto‑renewing users were told to accept Copilot at a higher price or cancel, despite an undisclosed third option accessible only via the cancellation flow.
- Following Copilot’s integration, annual fees rose from $109 to $159 for Personal plans and from $139 to $179 for Family plans, according to the regulator.
- Federal Court proceedings target penalties and consumer redress, with potential fines up to the greater of $50 million, three times any benefit, or 30% of adjusted turnover, as Microsoft says it fell short of its standards.