Microsoft has today began contacting more than 2.7 million Microsoft 365 Personal and Family subscribers in Australia to apologise and offer refunds after tech giant failed to communicate all subscription options.
Microsoft has issued an apology to its Australian subscribers after price changes and alternatives were not outlined more clearly and transparently.
In October 2024, when the price rises came into effect, the Australian Competition and Consumer Commission found that Microsoft had only displayed the plans that offered its AI tool Copilot+ but were now shown the option of remaining on their existing plan without Copilot+ at no extra cost.
“In response to the demand for advanced AI tools, we introduced AI capabilities into the Microsoft 365 Personal and Family subscriptions that we offer in Australia,” the apology said.
“In hindsight, we could have been clearer about the availability of a non-AI enabled offering with subscribers, not just to those who opted to cancel their subscription.
“In our email to subscribers, we expressed our regret for not being clearer about our subscription options, shared details about lower-priced alternatives that come without AI and offered a refund to eligible subscribers who wish to switch.
“We have been present in Australia for more than 40 years, operating on the principles of trust and transparency.
“We fell short of our standards here, and we apologise. We will learn from this and improve.”
Microsoft has sent an email to all its Microsoft 365 customers outlining their subscription options and whether they are entitled to a refund.
Here are the options Microsoft are sending to customers today:
Option 1: Stay on Microsoft 365 [Personal/Family], your current plan
– Microsoft 365 [Personal/Family] includes the core Microsoft 365 apps plus our AI assistant Copilot and ongoing feature updates.
– Microsoft 365 [Personal/Family] renews at [$16/$18 AUD per month tax inclusive].
– If you wish to stay on Microsoft 365 [Personal/Family], no action is needed.
Option 2: Switch to Microsoft 365 [Personal/Family] Classic and receive a refund
– While Microsoft 365 [Personal/Family] Classic includes the core Microsoft 365 apps and regular security updates, it does not include our AI assistant Copilot and may not receive new feature updates.
– Microsoft 365 [Personal/Family] Classic renews at [$11/$14 AUD per month tax inclusive], the price you paid before the increase.
– If you want to continue using Microsoft 365 [Personal/Family] Classic after you switch plans, you’ll need to keep recurring billing enabled.
– If you switch to Microsoft 365 [Personal/Family] Classic by 31 December 2025, we’ll refund the difference in price between plans, starting from your first renewal date after 30 November 2024. We’ll process your refund to the payment method you use to subscribe within 30 days. Once the refund has been processed, it will be reflected in your Microsoft account. This refund option is only available to subscribers in Australia who receive this email and switch to the Microsoft 365 [Personal/Family] Classic plan by 31 December 2025.
