What happened
01
The ACCC filed the case in the Federal Court on 27 October 2025.
02
Prices rose 45% for Personal and 29% for Family plans with Copilot added.
03
The ACCC alleges the Classic plan was left out of the price rise notices.
04
Microsoft apologized in November 2025 and offered refunds to people who switch.
Why this is a design failure
When the cheaper option only appears as you try to leave, an AI add-on becomes the default by design.
The fair alternative
Show every plan, including the one without the AI feature, in the same notice.
Do
List every plan, with and without AI, side by side.
Don’t
Don’t reveal the cheaper option only in the cancel flow.
Company response
Microsoft said it could have communicated more clearly, apologized and offered refunds.