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Microsoft Apologizes to Australian 365 Users, Offers Refunds After ACCC Lawsuit

Regulators say Microsoft misled 2.7 million Australians by hiding cheaper non‑AI options.

Overview

  • Microsoft emailed Personal and Family subscribers with clearer choices that include Copilot plans and lower‑priced Classic tiers without AI.
  • Subscribers who switch to Classic by December 31, 2025 can receive refunds for payments made after November 30, 2024, with processing expected within about 30 days.
  • The ACCC’s case focuses on two emails and a blog post from October 31, 2024 that allegedly failed to disclose the Classic option except within the cancellation flow.
  • Following Copilot’s inclusion, annual prices rose to A$159 from A$109 for Personal plans and to A$179 from A$139 for Family plans.
  • Some customers report errors preventing a downgrade to Family Classic, while the ACCC continues to seek penalties, injunctions and consumer redress in Federal Court, with potential fines up to A$50 million.