Microsoft 365 AI Price Hike Arbitration: Sign Up Today

Attorneys working with ClassAction.org are gathering Microsoft 365 subscribers to take legal action against the tech giant on the belief that Microsoft may not have adequately informed its subscribers, after implementing its Copilot AI into the service, that a non-AI-integrated, lower-cost version would still be available.

Around October 31, 2024, Microsoft announced that, upon the next auto-renewal of their subscription, all Microsoft 365 Personal or Family plan subscriptions would be subject to a price hike and that Microsoft’s Copilot AI would be automatically integrated into the service. According to the attorneys, those who did not want the AI integration, the price hike or both were left to believe that their only other option was to cancel their subscription entirely.

However, the attorneys suspect that subscribers who began the cancellation process discovered that an AI-free, lower-cost version of Microsoft 365, now under the banner of 365’s Classic plans, was an available path for subscription renewal. The attorneys believe that Microsoft may have intentionally hidden this information, only making it known via the cancellation process and not including it in any of the company’s communications to its Microsoft 365 subscribers.

Users Share Concerns, Complaints About Copilot AI, Subscription Price Hike

Many Microsoft 365 subscribers have taken to online forums to express their disinterest in being forced to use AI products, their dissatisfaction with the large price increase and their distaste for the way Microsoft seemingly hides its AI-free option from users or otherwise makes it difficult to access.

Below is a sampling of posts from Microsoft’s official Q&A page and various Reddit forums where users have discussed their concerns and complaints with the changes to Microsoft 365 [sic throughout]:

I do not want copilot or any other AI. I’ve seen that microsoft offered 365 subscriptions without copilot (classic or similar) but I couldn’t find them. I cancelled my subscription after you [Microsoft] auto-enrolled me for a copilot subscription and tried again, but still didn’t get an option for a non-copilot subscription. I’m back again now because I need my subscription for my existing onedrive storage, but I’m still not happy. By (ironically) asking copilot, I’ve managed to uninstall it on my device, but I’m still paying for it as part of my subscription. If microsoft doesn’t provide me with an option to buy a service without it (or any other AI) I’m going to transfer my files elsewhere and bin off 365 all together. I do not want AI on my devices and I do not want to pay for them.”
— Anonymous, Microsoft Q&A

Hey Microsoft. It’s cool and all that you’re playing with AI, but I DON’T WANT IT … Please… give us a cheaper subscription that locks out the AI functions. I don’t want them.”
— Phlucious, Reddit.com

…Microsoft increasing the price by 42% without warning and with the excuse of copilot is abuse to customers. Particularly, when there are other ‘free’ options. They should have offered it, but not immediately move[d] everyone to the ‘Premium’ tier. And that’s the problem with the subscription economy, the business model is based on tricking the customer, not making clear that there are options, betting on people forgetting to cancel before a deadline. It’s plain abuse.”
— Murky-Bear, Reddit.com

I think cancelling 365 outright is probably the best option bc I shouldn’t have to check if I’ve been forced into something I didn’t ask for. Most people would call this theft.”
— I-Am-Only-Me, Reddit.com

It’s very clear they’re doing this in the most confusing way possible. That they are making it incredibly impossible to revert classic, for instance you can’t switch to classic personal if you’re on family and vice versa. If you’re in between office plans because you’ve been shopping around or something you’re not able to sign up for the classic version at all. And even if you give in and pay for the new full price amount, turning off copilot is incredibly difficult.”
— Alternative-Farmer98, Reddit.com

There’s a lawsuit happening in Australia right now for this very reason. Microsoft forced users to a more expensive plan with the copilot… built in, deceiving customers and not informing them that the cheaper plan they were originally on was still available.”
— NoodlxCup, Reddit.com

What Am I Signing Up For? Is This a Lawsuit?

You are not signing up for a lawsuit, but rather a process known as mass arbitration. This is a relatively new legal technique that, like a class action lawsuit, allows a large group of people to take action and seek compensation from a company over an alleged wrongdoing. Here is a quick explanation of mass arbitration from our blog:

“[M]ass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. The aim of a mass arbitration proceeding is to grant relief on a large scale (similar to a class action lawsuit) for those who sign up.”

Microsoft’s services agreement contains an arbitration clause and a class action waiver, which require users to resolve any disputes with the company via arbitration, a form of alternative dispute resolution that occurs outside of court before a neutral arbitrator, rather than a judge or jury. For this reason, attorneys working with ClassAction.org have decided to handle this matter as a mass arbitration rather than a class action lawsuit.

How Much Does This Cost?

It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award.

If they don’t win your claim, you don’t pay.

How Much Money Could I Get?

There are no guarantees as to how much money you could get or whether your claim will succeed. However, affected consumers residing in Alaska, Colorado, D.C., Hawaii, Idaho, Indiana, Kansas, Montana, New Hampshire, New York, Oklahoma, Rhode Island, Utah or Virginia could have claims worth $500 or more, depending on their state’s consumer protection laws.

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