Microsoft has issued an apology, and is offering refunds, to Microsoft 365 subscribers in New Zealand for increasing their fees to include its AI assistant, Copilot, a year ago – without the option to opt out.
This comes after the Australian Competition and Consumer Commission (ACCC) took Microsoft to court for allegedly misleading millions of Australians over Microsoft 365 subscriptions.
In a blog post released today, Microsoft said it was contacting New Zealand Microsoft 365 Personal and Family subscribers to express regret for not being clearer about its subscription options when it introduced AI capabilities into the plans in October 2024.
At the time, customers who did not wish to pay more for Copilot were not given a clear alternative apart from cancelling their subscriptions.
“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,” Microsoft said.
“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.”
The company was offering subscribers two options – to stay on their current plans, which include Copilot, or switch to a Classic plan, without Copilot, and receive a refund.
Those who switch to Microsoft 365 Classic by 31 December 2025, will be refunded the difference in price between plans – $5/month, starting from their first renewal date after 30 November 2024.