Tech

Microsoft says sorry to Aussie Office 365 users after ACCC crackdown

Microsoft’s has admitted to dropping the ball with Aussie Office 365 subscribers, apologising after the ACCC launched court action over misleading renewal pricing.

The ACCC reckons Microsoft wasn’t upfront about a cheaper “Classic” subscription option that didn’t include its new Copilot AI tools. Instead, customers were pushed toward the pricier plans with AI built in, with no clear mention of the cheaper alternative.

ACCC Chair Gina Cass-Gottlieb said Microsoft “concealed” the classic plan, calling the move a deliberate effort to upsell customers. “We believe many Microsoft 365 customers would have opted for the Classic plan had they been aware of all the available options,” she said.

Now facing a potential $50 million penalty, Microsoft has done a bit of a mea culpa — sending out emails to affected Aussie customers from today.

In a statement, Microsoft admitted it could have “been clearer about the availability of a non-AI enabled offering” when prices went up back in October 2024. The company says it’s now letting subscribers know about the cheaper option and offering refunds to anyone who wants to switch.

“We’ve been in Australia for more than 40 years, operating on the principles of trust and transparency,” Microsoft said. “We fell short of our standards here, and we apologise. We will learn from this and improve.”

So, if you’ve got a Microsoft 365 subscription, Personal or Family, keep an eye on your inbox. There could be a refund waiting if you’d rather stick with Office minus the AI.

Recent Posts

  • Podcasts

The Best Movies You’ve Never Seen podcast – Dead Calm

Dead Calm is a 1989 Australian psychological thriller directed by Phillip Noyce, starring Nicole Kidman,…

2 hours ago
  • Tech

Beat the Steam Deck price rise and install SteamOS on your Lenovo Legion Go S

Last week, we received news that Valve was increasing the price of the Steam Deck. …

6 hours ago
  • Tech

ECOVACS has massive EOFY savings on a couple of great robot vacuums

EOFY sales are always a great time to replace worn-out home appliances or buy something…

8 hours ago
  • Tech

Apple’s App Store hits record $1.4 trillion as Australians spend big on travel and groceries

Apple has released new figures showing the global App Store ecosystem generated over US$1.4 trillion…

18 hours ago
  • Tech

The Two Blokes Talking Tech podcast – Episode # 735 – Amazon’s Future plans, A smarter Alexa, Satellite Internet and more

Trevor and Stephen are in London as guests of Amazon for their "Delivering the Future"…

21 hours ago
  • Tech

Amazon’s paying staff to learn new skills — even if they use them somewhere else

A lot of people think of Amazon as huge warehouses with robots doing all the…

21 hours ago