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.
Design guide for this case
If you're designing a subscription with an AI add-on
Interface
Show every plan side by side, including the one without the AI feature, with prices in the same table.
Words
In price change notices: "Name every plan the user can choose, including the cheaper one without AI, in the same message."
Flow
Users can switch to the plan without AI from account settings, without having to start cancelling to find it.
Metrics
Don't count AI add-on uptake as success when it is the default. Track how many users made an informed choice between plans.
Testing
Ask 5 subscribers to find the cheapest plan from the price notice and record how many find it without entering the cancel flow.
Before launch
01
Does the price notice list every plan, including the one without AI?
02
Can users find the cheaper plan outside the cancel flow?
03
Are all plans shown with equal weight?