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Microsoft 365 refund fails to head off $59m lawsuit, customers making claims hit glitches

  • Last week, the Australian Competition and Consumer Commission began Federal Court proceedings against Microsoft Australia and Microsoft Corporation, alleging about 2.7 million Australians were misled over pricier Copilot-enabled Microsoft 365 plans.
  • Since October 31, 2024, Microsoft told subscribers with auto-renewal they had to accept Copilot and higher prices or cancel, but the ACCC says an undisclosed Classic plan offered prior pricing without Copilot.
  • The price changes show Microsoft raised the Microsoft 365 Personal plan from $109 to $159 and the Family plan from $139 to $179, with a $40 to $50 savings on the Classic plan.
  • On Thursday, Microsoft Corporation apologised to subscribers in Australia, began contacting affected customers about a Microsoft 365 Family Classic alternative, and said it will refund eligible users.
  • The ACCC is seeking penalties, injunctions, declarations, consumer redress and costs, and if the Federal Court rules for the regulator, Microsoft Corporation could face multimillion-dollar fines.
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reseller.co.nz broke the news in on Wednesday, November 5, 2025.
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