Are you subscribed to Microsoft 365 Personal or Family? Class action over the Copilot price increase and the hidden “Classic” plans.

ACTIS LAW GROUP has filed an application for authorization to institute a class action in the Superior Court of Quebec against Microsoft Corporation and Microsoft Canada Inc. The application alleges that Microsoft misled subscribers when it added its Copilot artificial intelligence assistant to Microsoft 365 Personal and Family plans and raised their prices.

On January 16, 2025, Microsoft added Copilot to Microsoft 365 Personal and Family and raised Canadian prices by roughly 32% to 46%. Microsoft 365 Personal went from $79 to $115 per year (or from $8 to $11.50 per month). Microsoft 365 Family went from $109 to $145 per year (or from $11 to $14.50 per month). Existing subscribers were charged the new price at their next renewal.

Microsoft allegedly emailed existing subscribers telling them that they would have to pay the higher price to keep their subscription, that no action was needed, and that their payment method would be charged automatically. The only alternative presented was to cancel.

However, the application alleges that there was a third option Microsoft did not mention: “Classic” plans, which kept exactly the same Microsoft 365 services, without Copilot, at the old price. According to the allegations, subscribers’ Microsoft accounts showed the Classic plans only to those who clicked “Cancel subscription.” Microsoft has since stopped offering these plans, so subscribers who never knew about them can no longer switch.

Meanwhile, Microsoft’s own terms of use describe Copilot as being “for entertainment purposes only.”

In Australia, the consumer protection regulator took Microsoft to court over the same conduct. Microsoft then apologized, acknowledging that it “could have been clearer,” and offered refunds to subscribers in Australia and New Zealand. Regulators in the United Kingdom and Italy have also opened investigations. No apology or refund has been offered to subscribers in Quebec or elsewhere in Canada.

The class action seeks reimbursement of the extra amounts paid and punitive damages. It also asks the Court to order Microsoft to make the Classic plans available again to Quebec subscribers, without requiring them to start cancelling.

Who is included?

The proposed class includes all Quebec residents who paid for a Microsoft 365 Personal or Family subscription that included Copilot on or after January 16, 2025. This includes existing subscribers whose plans renewed at the higher price on or after February 14, 2025.

Your consumer rights

Actis Law Group believes consumers have a right to honest and complete information about the services they pay for. A company that changes the price or content of a subscription must clearly tell its customers about every option available to them, not just the most expensive one.

No cost to you

Participation in a class action is free for class members. Class actions are typically handled on a contingency basis, so class members pay nothing out of pocket. If compensation is obtained, legal fees are subject to approval by the Court.

If you or someone you know paid for a Microsoft 365 Personal or Family subscription and would like more information about potential compensation, or to be kept informed about the status of the Microsoft 365 Copilot class action, please provide our firm with your contact information using the form below.