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.