Microsoft Australia is currently embroiled in legal proceedings, accused of misleading 2.7 million Australians into purchasing a pricier 365 subscription package featuring its AI tool, “Copilot.”

The Australian Competition and Consumer Commission (ACCC) announced today that it has initiated legal action in the federal court against Microsoft for what it claims were deceptive communications.

In October of last year, Microsoft sent out two emails and published a blog post informing users with automatic renewals for Microsoft 365 Personal and Family plans that they needed to accept the Copilot integration and pay increased prices to keep their subscriptions active, or alternatively, cancel them.

It’s important to note that this legal case does not involve Microsoft 365 Business or Enterprise plans.

The ACCC, spurred by tips and discussions on Reddit, conducted an investigation and believes that millions of Australians have suffered financial harm as a result.

In court, the ACCC is seeking various forms of relief including penalties, injunctions, declarations, consumer compensation, and coverage of legal costs.

Corporations in breach of consumer law could face a maximum penalty of $50 million.

Microsoft said it is reviewing the ACCC’s claim and will work to ensure its practices are legal and ethical.

“Consumer trust and transparency are top priorities for Microsoft, and we are reviewing the ACCC’s claim in detail,” a Microsoft spokesperson said.

“We remain committed to working constructively with the regulator and ensuring our practices meet all legal and ethical standards.”