Microsoft 365 Misleading Subscription Price Canadian Class Action

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CONSUMER LAW GROUP is investigating a possible class action against Microsoft Canada and its parent company Microsoft Corporation for allegedly misleading Canadian customers when communicating subscription options and price increases, after it integrated its AI assist, Copilot, into Microsoft 365 plans.

The potential class action revolves around the fact that since on or about February 14, 2025, Microsoft had informed Canadian subscribers of Microsoft 365 Personal and Family Plans with auto-renewal enabled they could only maintain their subscriptions by accepting the integration of Copilot and pay higher prices ($115.00 for a Personal Plan, instead of $79.00 prior to price increase).

It is alleged that Microsoft failed to notify subscribers in the emails announcing the price increase or in auto-renewal emails that subscribers had the option of remaining on their original Microsoft 365 Personal or Family Classic plan subscriptions that do not feature Copilot and avoid the price increase. Customers were only notified of this if they took steps to cancel their subscription; however, many subscribers simply accepted the price increase, never seeing the cancellation screen, and did not see the option of avoiding the price increase by maintaining their original subscription.

It is alleged that Microsoft’s communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all features of their existing plan without Copilot and at the lower price, and that many Microsoft 365 customers would have opted to remain on the Classic plan had they been aware of all available options.

In October 2025, the Australian Competition and Consumer Commission commenced proceedings in the Federal Court of Australia against Microsoft Australia and its parent company Microsoft Corporation for allegedly misleading 2.7 million Australian customers by engaging the conduct discussed above.

If the allegations are proven, the potential class action would assert claims that Microsoft violated applicable consumer protection legislation, the federal Competition Act, and committed fraudulent or negligent misrepresentation, civil fraud, predominant purpose or unlawful means conspiracy, and unjustly enriched themselves by failing to clearly notify existing subscribers of the option to renew their pre-existing subscriptions without adding Copilot and remain at the original subscription price unaffected by the price increase.

Consumer Law Group believes action must be taken for all consumers who were denied the opportunity to make informed decisions about their Microsoft 365 subscription options, including the possibility of renewing their existing Classic subscription without Copilot and at the lower price.

If you or someone you know have paid to renew your subscription to Microsoft 365 at a higher price than the price of your subscription to the Classic Personal or Family Plan after February 15, 2025, please provide your contact information to our law firm using the below form.

IF YOU WISH TO JOIN THE CLASS ACTION OR TO SIMPLY GET MORE INFORMATION, PLEASE COMPLETE THE FORM BELOW. Please note that providing your information creates no financial obligation for you. You are not charged any fee or cost for joining this class action. Our law firm is paid a contingency fee from the compensation recovered, only if the class action is successful. All information contained in this transmission is confidential and Consumer Law Group agrees to protect this information against unauthorized use, publication or disclosure.