Editing CursorAI "unlimited" plan rug pull

Cursor AI silently changed their ''"unlimited"'' Pro plan to severely rate-limited without notice, locking users out after 3-7 requests & forcing them to upgrade to regain functionality.<ref>{{Cite web |title=Developer Reports Cursor AI Plan Change and Lockouts |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028 |access-date=2025-07-05}}</ref>

==Background==
Cursor AI, a developer-focused AI code assistant, marketed its $20/month Pro plan with "Unlimited Agent Requests,"<ref>{{Cite web |title=Cursor Pricing Page Archive |url=https://web.archive.org/web/20250222054643/https://www.cursor.com/en/pricing |access-date=2025-07-05}}</ref> targeting professional developers who depend on advanced models like Claude 4 Sonnet for coding workflows. The service was sold as a premium development tool that provides reliable access to frontier AI models for professional software development.

After introducing a higher-priced Ultra Plan in June 2025, Cursor quietly changed the Pro plan description from ''"Unlimited Agent Requests"'' to ''"Extended limits on agent"'' without clarifying actual limits or notifying existing customers.<ref>{{Cite web |title=Clarifying June 16 Pro Changes |url=https://forum.cursor.com/t/clarifying-june-16-pro-changes/111740 |access-date=2025-07-05}}</ref> The company implemented a system based on "$20+ of model inference" allowance but provided no tools for users to track consumption against this limit.<ref>{{Cite web |title=Cursor Community Discussion: No Usage Tracking |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/18 |access-date=2025-07-05}}</ref>

==Service Degradation and Consumer Exploitation==
===Silent Plan Changes===
On June 16, 2025, Cursor AI pushed through large changes to their Pro Plan terms without properly notifying customers:<ref>{{Cite web |title=Clarifying June 16 Pro Changes |url=https://forum.cursor.com/t/clarifying-june-16-pro-changes/111740 |access-date=2025-07-05}}</ref>

*Changed "Unlimited Agent Requests" to "Extended limits on agent" on pricing page
*Implemented usage limits based on vague ''"$20+ of model inference"'' allowance
*Introduced harsh rate limiting with reset periods described only as ''"5-24 hours"''<ref>{{Cite web |title=Cursor Documentation on Rate Limits |url=https://docs.cursor.com/rate-limits |access-date=2025-07-05}}</ref>
*Removed transparency features that would allow users to track usage against limits<ref>{{Cite web |title=User Complaints About Lack of Usage Dashboard |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/20 |access-date=2025-07-05}}</ref>

===User Impact===
Users began experiencing unexpected rate limiting with minimal usage:

*Users reported being rate limited after few requests to Claude 4 Sonnet
*Rate limits lasted 5-24 hours despite documentation claiming ''"every few hours"'' reset periods<ref>{{Cite web |title=User Report: 26 Hour Rate Limit |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/45 |access-date=2025-07-05}}</ref>
*No advance warning when approaching limits or specific indication of when the limits would reset
*Dashboard showed usage events but no dollar consumption tracking against monthly allowance
*Sudden transitions from ''"included in Pro"'' usage to expensive pay-as-you-go billing without warning.

===Suppression of Customer Complaints===
The company suppressed customer complaints:

*AI moderation system repeatedly hid customer complaint threads from public view<ref>{{Cite web |title=Reports of Forum Shadowbans |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/48 |access-date=2025-07-05}}</ref>
*Professional, well-documented complaints became unsearchable on the forum<ref>{{Cite web |title=Forum Thread Hidden By Moderation |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/48 |access-date=2025-07-05}}</ref>
*Staff dismissed documented evidence as ''"conspiracy theories"''<ref>{{Cite web |title=Dismissal of Complaints |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/60 |access-date=2025-07-05}}</ref>
*Multiple threads documenting the issues were shadow-banned or made invisible to new users

==Cursor's response==
===Initial denial & suppression===
Cursor AI's initial responses were inadequate & dismissive:

*Customer support provided canned responses that ignored specific questions about timing & usage numbers<ref>{{Cite web |title=Template Support Responses |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/62 |access-date=2025-07-05}}</ref>
*Staff members dismissed user concerns as ''"conspiracy theories"'' despite documented evidence<ref>{{Cite web |title=Staff Responses to Rate Limit Complaints |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/43 |access-date=2025-07-05}}</ref>
*AI moderation system continued hiding customer complaint threads<ref>{{Cite web |title=Ongoing Forum Suppression |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/37 |access-date=2025-07-05}}</ref>

===Official Damage Control Response===
On July 5, 2025, facing overwhelming cross-platform pressure, Cursor AI published a blog post acknowledging the issues:

*Admitted that ''"unlimited usage"'' was misleading and only applied to inferior Auto mode, not direct model access<ref>{{Cite web |title=Cursor Clarifies Misleading Unlimited Claims |url=https://forum.cursor.com/t/clarifying-june-16-pro-changes/111740 |access-date=2025-07-05}}</ref>
*Clarified that Pro plan includes approximately 225 Sonnet 4 requests per month (down from previously advertised unlimited)
*Offered full refunds for unexpected charges between June 16 and July 4, 2025
*Updated documentation to provide more specific limit information, though still vague on reset timing

===Continued Problems===
Even after the official response, fundamental issues remained unresolved:

*Users continued experiencing rate limiting after just 3 prompts despite documentation claiming 225 requests/month
*Reset timing described vaguely as ''"5-24 hours"'' with no guarantees (''"best-effort basis"'')
*No real-time usage tracking implementation to help users manage consumption
*[[File:Forum screenshot.jpg|thumb|Forum user doing math to demonstrate how cursor is 29x worse than claude]]Value proposition remained significantly worse than competitors (29:1 ratio disadvantage)<ref>{{Cite web |title=Comparison with Competitors |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/64 |access-date=2025-07-05}}</ref>

==Consumer response==
===Cross-Platform Documentation===
The consumer backlash spread to multiple platforms:

*A detailed 51-page forum thread documented user experiences with screenshots, usage data, and technical analysis<ref>{{Cite web |title=Pro Plan Rate Limit Transparency Issues - Cursor Forum |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028 |access-date=2025-07-05}}</ref>
*[[File:X post on cursorai.jpg|thumb|twitter post from disgruntled customer of cursorai]]Hundreds of complaints across Twitter/X from developers worldwide experiencing identical issues<ref>{{Cite web |title=Developer Complaints on Twitter |url=https://x.com/0ni_x4/status/1940885976127283342 |access-date=2025-07-05}}</ref>
*Community-maintained archives created due to forum censorship and thread hiding<ref>{{Cite web |title=Archive of Hidden Threads |url=https://archive.is/QDnSS |access-date=2025-07-05}}</ref>
*Reddit discussions confirming the same problems across the user base<ref>{{Cite web |title=Reddit User Reports on Cursor Rate Limits |url=https://www.reddit.com/r/cursor/comments/1lqvl21/cursor_12_and_claude_4_sonnet_rate_limit_is_this/ |access-date=2025-07-05}}</ref>

===User Actions===
Affected consumers took direct action:

*Mass cancellations of annual subscriptions with refund requests<ref>{{Cite web |title=User Reports Cancellations |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/83 |access-date=2025-07-05}}</ref>
*Migration to transparent alternatives like Claude Code Pro '''(which offered 29x better value)'''<ref>{{Cite web |title=Discussion on Switching to Competitors |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/85 |access-date=2025-07-05}}</ref>
*Organized documentation efforts to preserve evidence of service changes<ref>{{Cite web |title=User Documentation Efforts |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/87 |access-date=2025-07-05}}</ref>
*Cross-platform pressure campaign that ultimately forced the company's official response<ref>{{Cite web |title=Pressure Leading to Official Response |url=https://forum.cursor.com/t/clarifying-june-16-pro-changes/111740 |access-date=2025-07-05}}</ref>
*Users sharing workarounds like reverting to "legacy pricing" where available<ref>{{Cite web |title=Users Reverting to Legacy Pricing |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/90 |access-date=2025-07-05}}</ref>

===Consumer Impact===
CursorAI's actions seriously disrupted pro developer's workflows:

*Developers experienced sudden 26-hour lockouts during critical project work
*Users forced to switch to inferior Auto mode or stop their dev work completely
*Anxiety around usage due to unpredictable enforcement & billing<ref>{{Cite web |title=User Anxiety Over Enforcement |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/95 |access-date=2025-07-05}}</ref>
*Loss of confidence in service reliability for professional development work
*Financial pressure to upgrade to $60+ plans to regain previously advertised functionality

===Community Sentiment===
Documented consumer sentiment included:

*Accusations of '''"rug-pull"''' & bait-and-switch tactic.
*Comparisons to "snake oil salesmen" and predatory business practices<ref>{{Cite web |title=Snake Oil Comparisons |url=https://forum.cursor.com/t/pro-plan-rate-limit-transparency-issues-need-specific-usage-details/113028/83 |access-date=2025-07-05}}</ref>
*Calls for transparency in billing and usage tracking
*Demands for honest marketing that doesn't rely on technical loopholes
*Recognition that the incident represented broader anti-consumer trends in AI services

==References==
{{reflist}}

[[Category:Cursor]]
[[Category:Opaque Billing and Metering]]
[[Category:Remote Service Degradation]]
[[Category:Bait and Switch Marketing Practices]]
[[Category:Corporate Censorship]]