Microsoft apologizes for not explaining cheaper no-AI M365 plans, and all it took was a government lawsuit

Microsoft Australia has apologized to users of its M365 suite after regulators accused it of steering them towards pricey bundles that include its Copilot AI service. As The Register reported in January, Microsoft contacted subscribers in six Asia-Pacific nations in an email to advise of imminent price rises for M365 bundles …

[Sorry that handle is already taken.]

Microsoft apologises for getting caught attempting to rip off its customers

There I fixed the headline

(an icon for Microsoft)

[Like a badger]

Re: Microsoft apologises for getting caught attempting to rip off its customers

The problem here is that announcing a plan that there was no way to sign up for was not an oversight or accident, it was a choice in order to railroad customers. Microsoft are a big, mature, well resourced company and would have known that why they were doing was illegal. But they still did it, because like all American tech companies they take the attitude that they will do what they want until caught, treating any fines as simply a cost of doing business, and probably and accurately assessing even after this case many customers who would not have opted in, will not now opt out. In short, for a few million AUD (at most) they've got the outcome they wanted.

This behaviour will continue until regulators are given the power for more punitive settlements that ensure the costs of breaking local laws exceed the benefits. In theory many laws allow for that, but in practice that is not followed through. Controversially, I'll assert that big companies shouldn't be allowed to challenge regulators through the courts - that's simply the opportunity to game the system and use well paid lawyers to outgun the poorly paid and badly resourced public sector.

[jonathan keith]

Re: Microsoft apologises for getting caught attempting to rip off its customers

Controversially, I'll assert that big companies shouldn't be allowed to challenge regulators through the courts

Absolutely nothing controversial about that as far as I can see. Corporates have chosen to push the pendulum as far as they can, and we're starting to recognise that we've had enough of their nonsense. We need to sustain the pressure on lawmakers to start moving the pendulum back, to ignore the howls of outrage from the corporates, billionaires, and lobbyists, and to ultimately make sure these greedy swine can't ever do it again.

[keithpeter]

Re: Microsoft apologises for getting caught attempting to rip off its customers

Understand the sentiment in these comments, but somewhat doubtful of the wisdom of allowing a quasi-legal procedure to be applied without any appeal or review process. That creates a precedent that might come back to bite in later years.

I'm all for fines that are a % of turnover and I'm all for things like the US consent decrees.

[Benegesserict Cumbersomberbatch]

Re: Microsoft apologises for getting caught attempting to rip off its customers

The ACCC is a public organisation but it brings legal action directly in the Federal Court, a bit like a public prosecutor, but without the need for a police investigation - it has its own investigatory powers. There's nothing quasi- about the legal trouble Micros~1 are in here. That this is happening means there's the appearance of a prima facie breach of consumer law. So the next questions they will have to answer won't be PR officials from a journo; it will be board level management in front of the beak.

[Anonymous Coward]

Re: Microsoft apologises for getting caught attempting to rip off its customers

I'd enjoy it more if they were required to make good by paying a year's difference in subscription to all users, whether they choose to keep the AI version or not, and to pay twice as much again to users who choose to turn it off. That way they are getting reasonably punished, including a deterrent amount, and they are effectively required to encourage people to opt out.

You'd have to ensure you got a judgement requiring similar every single time they pulled a stunt like this of course

[An_Old_Dog]

Re: Microsoft apologises for getting caught attempting to rip off its customers

This behaviour will continue until regulators are given the power for more punitive settlements ...

... at which time, the corporate overlords will (continue to?) use their money and influence to sway the people on the regulatory boards to provide company-favorable outcomes.

[Doctor Syntax]

Re: Microsoft apologises for getting caught attempting to rip off its customers

" “In hindsight, we could have been clearer " .... but we thought we could get away with it.

[Excused Boots]

Re: Microsoft apologises for getting caught attempting to rip off its customers

And we would have gotten away with it too, if it weren't for you meddling customers!

[xyz]

Bunch of runts

feel press to change the first consonant.

[ComputerSays_noAbsolutelyNo]

Re: Bunch of runts

Lunch of runts

I raise you to a change of two consonants

[Rockets]

Email Link Broken

I got the apology email from MS and when I clicked on the "Switch" link to switch my plan to the Family Classic plan, however the choice wasn't there. Only to Personal Classic or Family with Copilot. MS have now "Corrected" Link and resent the emails and I can now easily switch to the plan without Copilot but IMO it's still deceptive trying to push you to stay on the Copilot more expensive plan and it obscures that Copilot is only for the subscription owner and not the whole family.

[Raphael]

I changed it back some time ago. I had to go to the "Cancel My Plan" page before it would offer me the non-CoPilot version.

(and I am now back on the Family Classic Plan)

[Rockets]

Hope you get a refund. I switched today with the link that MS sent out, well the correct link they sent out in a second email, and it reported that I'll still be on the same tier till it next renews in May.

[Benegesserict Cumbersomberbatch]

Following the law is so difficult when there's $ to be made.

[Apprentice Human]

I had my first run-in with Microsoft being an evil empire when posted to the Command & Staff College, Ford Queenscliff, in Victoria. I forget the time year but it had to be '88 or '89 and the company was Imagineering. Both C&SC and Imagineering are both long gone.

Microsoft, and any company representing them are doing the same thing now, as they did then.

After my issues with them I learnt about unix and never looked backed.

While Meta is worse, Micro$loth comes a close second in my opinion for really, really bad companies. (Never ask me about my 20 minute interview at Google with a drunken manager while he was at a party, and called 90 minutes late.).

[Benegesserict Cumbersomberbatch]

For all those left unimpressed

the Cancel Subscription option is still there.

[A_O_Rourke]

I wonder

If Microsoft will apply the changes to people in the rest of the world or will they wait for a government law suit before "fixing" the obscure information??

[Steve Davies 3]

no question that it will be the latter

AND

you will have to go to MS's local HQ, navigate an obstacle course that would cause Indiana Jones to think twice and finally pick a 9 tumbler lock on a filing cabinet that sports a label, 'Here Be Leopards'.

Big Brother MS wants your digital life one way or another. Resistance is futile.

[Bebu sa Ware]

Re: I wonder

"wait for a government law suit"

I imagine in a good many jurisidictions this bad faith† behaviour is perfectly legal, even legitimate, and the standard business operating procedure. Thinking of the US for starters.

So might be a long wait.

† arguably based on Microsoft's dismal record its fide is extremely male.

[PCScreenOnly]

Family Classic ?

I have a few of the family licenses added so good for a few more years, but MS just decided to put CoPilot on them.

I don't want and think that the old licenses should now be classed as "Family Classic"

Wonder if MS wil downgrade.....

[Anonymous Custard]

Re: Family Classic ?

Personally I'd say MS already downgraded them by dumping Coprolite into them.

Restoring the status quo would be an upgrade...

[Pascal Monett]

“We recognise we could have been clearer"

And we recognize that you weren't clearer on purpose.

The day these kind of people are shot for their lies can't come soon enough.

[Someone Else]

Re: “We recognise we could have been clearer"

Just following the (so far, successful) example of the pResident...

[Sora2566]

Re: “We recognise we could have been clearer"

Was going to upvote until I saw the death threat, so downvote from me.

[JimmyPage]

Actually, this is where "AI" is a tool

I have used ChatGPT to navigate a few obfuscated account queries.

[0laf]

Re: Actually, this is where "AI" is a tool

GPT is pretty good at helping fix Linux installations and choosing FOSS alternative software

[Anonymous Coward]

"Our relationship with our customers is based on trust and transparency".

Hahahahah.

I managed to switch away from coprolite for my own renewal (slowly moving away from MS but the kids need it for school), I don't recall it being much of an issue but I wouldn't have even known about 'Classic' as an option without reading it in El Reg.

[Doctor Syntax]

The missing word is "avoiding".

[Locomotion69]

As in "we don't trust our customers and therefore they do not get any transparancy".

In one year time this "Family classic" option is discontinued, all $$$ on AI !!

[Anonymous Coward]

Yep, if you can't be tricked into paying for it they will just take away the option and shove it down your throat even harder

[Rich 2]

“Our relationship with our customers is based on trust and transparency”

Indeed. That boat sailed aeons ago

[Someone Else]

That boat never existed.

[nobody who matters]

"Our relationship with our customers is based on trust and transparency".

That will be the misplaced trust that naive customers have for MS, and the transparency of the customer's device and efforts (or lack of them) to prevent MS from exfiltrating all their personal information.

[Who-me]

Who the hell wants Co-pirate on their systems? So, where is this "Classic" option on the UK site then?

[Ozumo]

You have to go via the "Cancel my subscription" link.

Trust and transparency currently only available in the antipodes.

[Throg]

Google pulled this stunt a month or two back with Workspaces. They increased the subscription price then justified it by saying “look, now has AI!”

The first thing I did was switch all that carp off, but we still have to pay for it.

(And yes, Workspaces is just about useful enough for us to warrant the sub.)

[Kurgan]

You may think you switched it off, but it's still sucking up all your data for training.

[Anonymous Coward]

"That apology may even be sincere,"

Yeah. The moon might be made of cheese, too.

[nobody who matters]

Do you mean it isn't!

And there was me thinking Wallace and Gromit had proved that it is made of Wensleydale.

[Anonymous Coward]

Link please

Now maybe it's geo-constrained....and if it has personal identifiers/params in the URL, DON'T!

But if not, or if the root address w/o identifiers can be posted here, I reckon it might help some vultures find their way to a copilot-less future....

[Jonathan Richards 1]

Re: Link please

This is at least one of many ways to a copilot-less future.

Downvote away, you knew someone was going to say it!

[Anonymous Coward]

the bigger question is...

Will Microsoft delete the data that copilot has uploaded, and then lobotomize itself of that data? Can't do that? They'll have to start over from scratch? Too fucking bad.

[Excused Boots]

Re: the bigger question is...

Will they delete the data....?

Stop it; my sides are splitting with laughter!

[xanadu42]

... avoid the price rise by signing up for a “Classic” version of M365...

Late last year and early this year a small number (5-10?) of my clients (here in Australia) showed me the Microsoft email regarding the fee changes...

I DEFINITELY remember that there was NO REFERENCE to a "Classic" version "without price-increase" being mentioned...

I DO NOT remember if the emails were in regard to "Personal" or "Family"

Microsoft's "Apology" seems to me to be an attempt to reduce potential fines of:

a) $50 million

b) three times the total benefits that have been obtained and are reasonably attributable, or

c) if the total value of the benefits cannot be determined, 30 per cent of the corporation’s adjusted turnover during the breach turnover period.

[ref: https://www.accc.gov.au/media-release/microsoft-in-court-for-allegedly-misleading-millions-of-australians-over-microsoft-365-subscriptions ]