Your subscription was $12.99. Now it's $19.99 — and the company says you agreed to it. Start with the contract, the price representation and the notice history before deciding whether the new charge is valid.
A Higher Subscription Price Is Not Automatically Unlawful
Businesses are generally free to change their pricing. The ACCC's guidance on unfair contract terms gives a relevant example in the broadband context: a term letting the provider increase the price during a fixed-term contract with no ability for the consumer to exit without penalty can be an example of a potentially unfair term. The problem in that scenario is not the increase alone — it's being locked in with no genuine ability to leave once the price changes.
Build the Price Timeline
- The price and terms when you subscribed.
- Any notice you received of the change, and when.
- What the notice said about your options, including cancelling.
- The date the new price was first charged.
- Whether the contract described how or when prices could change.
- Whether you were locked into a fixed term at the time of the increase.
Recent Microsoft Proceedings Show Why Notice and Options Matter
In October 2025, the ACCC commenced Federal Court proceedings against Microsoft Australia, alleging that when it introduced its Microsoft 365 Copilot integration and associated price increase, consumers were misled into believing they had to accept the higher price or cancel their subscription, when a lower-cost "Classic" plan option without Copilot was in fact available to existing subscribers. As of publication, this is a pending allegation — the Federal Court has not yet determined the matter, and it should not be reported as an established finding of wrongdoing.
Check Whether the Price Term Is Unfair
Under the Australian Consumer Law, a term in a standard-form consumer or small business contract can be found unfair if it would cause a significant imbalance in the parties' rights and obligations, is not reasonably necessary to protect the legitimate interests of the party who benefits from it, and would cause detriment if relied on. Since 9 November 2023, contravening the unfair contract terms prohibition itself can attract penalties, not merely make the term unenforceable.
If the Price Increase Does Not Match Your Agreement
Contact the business, cite the term you originally agreed to and ask it to identify exactly which clause authorises the new price and how notice was given. Ask for a correction or a penalty-free way to leave if you were not properly given one.
What This Means for You
- A price increase is not automatically a legal problem.
- Being locked in with no fair exit once the price changes is where scrutiny increases.
- Keep a dated record of the original price, the notice and the new charge.
- Treat pending ACCC court proceedings as allegations, not settled findings.
- Ask the business to point to the specific term and notice that justify the change.
Related Kibbo Tools
Sources
- ACCC — Contracts and unfair contract terms, updated 2026. accc.gov.au
- ACCC — Microsoft 365 proceedings media release, 27 October 2025. accc.gov.au
- Australian Consumer Law — Competition and Consumer Act 2010, Schedule 2. legislation.gov.au