Microsoft Sued by Australian Consumer Authority Over Alleged Misleading Subscription Practices

The Australian Competition and Consumer Commission (ACCC) has accused Microsoft of deliberately hiding subscription information from its Australian customer base, resulting in over 2.5 million users being misled. The ACCC alleges that Microsoft touted a higher price for subscription plans to include its Copilot AI tool, leaving customers with the option to cancel or be forced to upgrade. Microsoft has stated that it is reviewing the claim, prioritizing consumer trust and transparency.

Key Takeaways:

• The ACCC has sued Microsoft for allegedly misleading over 2.5 million Australian users about subscription practices, including hiding a third option to retain the old plan at the old price.
• The ACCC alleges that Microsoft's actions were deliberate and aimed at increasing the uptake of Copilot and associated revenue.
• Microsoft is accused of telling users that a higher price must be paid to keep subscriptions, which included Microsoft's Copilot, or be forced to cancel.
• The ACCC will seek a penalty to demonstrate non-compliance with Australia's consumer laws is not acceptable.
• This lawsuit follows a global probe involving the United States, Canada, and Australia to identify hackers who attacked a security flaw in Microsoft software.
• Microsoft has been under scrutiny for their practices, including a $1 billion lawsuit launched by British digital rights advocacy groups in December 2022.

Statistics:

• Over 2.5 million Australian users were allegedly misled by Microsoft's subscription practices.
• The ACCC will seek a penalty for Microsoft's alleged non-compliance with Australia's consumer laws.
• Microsoft revealed in May that it was axing roughly 6,000 jobs in its global workforce.
• Microsoft has been involved in a global probe with the United States, Canada, and Australia to identify hackers who attacked a security flaw in Microsoft software.

Sources:

• UPI, "Australia's consumer authority accuses Microsoft of disrupting subscription practices"
• ACCC, "ACCC sues Microsoft alleging misleading conduct"
• ABC News, "Microsoft reviewing claim it misled customers about subscription practices"