Microsoft says sorry for 365 Copilot price confusion — Here’s how to get refund
Microsoft has apologised to 2.7 million Australian Microsoft 365 users after the ACCC accused it of misleading subscribers during a Copilot-related price hike. Eligible customers can switch back to Classic plans and claim refunds for overpayments made since November 30, 2024.
New Delhi: Microsoft has confirmed to almost 2.7 million Australian subscribers to its Microsoft 365 Personal and Family packages that it had not made it clear to them about pricing updates that were part of its AI assistant, Copilot. The apology follows the Australian Competition and Consumer Commission (ACCC) accusing the firm of deceiving the consumers by failing to disclose the cheaper non-AI plan options in a proper manner. Microsoft has started sending refund emails to the impacted customers, with the qualified individuals having the opportunity to restitute the additional costs paid after their initial renewal after November 30, 2024.
The technology giant claimed that it is collaborating with ACCC to provide refunds without difficulty and enhance openness in subsequent information exchange. Those who do revert to the Classic plans before the end of December, 2025, will have their money back within 30 days of the conversion. Microsoft claimed that the money will be refunded to the initial way of payment and will be received soon after it.
ACCC allegations and price hike controversy
The case was brought to the Federal Court by the ACCC, which stated that Microsoft violated the Australian consumer law by not informing customers that they could keep their old non-AI plans as well, which were called Classic. In October 2024 and early 2025, subscribers received an announcement of either paying increased prices to upgrade to Copilot-enabled plans or cancelling their subscriptions. The Microsoft 365 Personal plan was up by 45 percent by raising the AUD 109 to AUD 159 per annum, whereas the Family plan was up by 29 percent by raising AUD 139 to AUD 179. The watchdog also filed a legal suit against the company, as many users complained of confusion and unforeseen charges. The maximum penalty Microsoft would receive should the case be decided against it is AUD 50 million.
In a public statement, Microsoft confirmed that it was sorry that the non-AI options were not more obvious in the first place. It claimed that Copilot capabilities were included based on the demand for high-end features but acknowledged that the less expensive option should have been notified to the consumers.
How to claim your Microsoft 365 refund?
Users in Australia on Personal or Family plans that have auto-renewal can request a refund by switching to the Classic plan through December 31, 2025. Here’s how to do it:
- Look in your inbox; there is an official email that Microsoft sent you named Your Microsoft 365 Options. In case you have not done it, enter your Microsoft account, and under Services and subscriptions, you will see your renewal date.
- To maintain the Copilot plan (AUD 16 per month individually or AUD 18 per month in Family), or to use Classic (AUD 11 per month individually or AUD 14 per month in Family).
- Go to the email using the secure link or visit account.microsoft.com/services and pick the plan and choose this option – Switch to Classic.
- Ensure that you have recurring billing on and make an order and wait to get a confirmation email or in-app notification.
- Refunds will be completed in 30 days and updated against the mode of payment.
In the case of any technical problems, customers can reach Microsoft support directly through the support.microsoft.com platform or through the live chat service as a manual option.