Microsoft 365 with Copilot users who were forced to accept higher prices for its AI Copilot version may be eligible for a refund. The company also faces potentially stiff ACCC fines for deceptive behaviour.
In November 2024, we wrote Microsoft 365 price increase – do you want to pay for AI? and how new and renewal subscriptions would pay more. The single-user cost, sans Copilot, was $109 (now $159), and the Family version for up to six users was $159 (now $179).
What Microsoft neglected to tell us was that if you cancelled your subscription, it would offer you the old version for the existing price.
In a pretty weak mea culpa, Microsoft has offered Microsoft 365 Classic users who were forced to upgrade a refund of the difference in costs, and you can revert to Microsoft Classic if you switch plans back by 31 December 2025.
There is one catch. Only those who receive an email from Microsoft are eligible, and to keep that version, you must enable annual recurrent automatic credit card payment. If you bought the new Microsoft 365 via retail or an online merchant, no refund applies.
We have been present in Australia for more than 40 years, operating on the principles of trust and transparency. We fell short of our standards here, and we apologise. We will learn from this and improve.
If you want to give Microsoft the flick, the CyberShack article lists options.
Microsoft 365 with Copilot is just the start. It is in Windows, Outlook, MS Edge and who knows what.
In the EU, Microsoft 365 is supposed to have a single CoPilot 365 remove button. All it does is stop Copilot from appearing and interrupting you, but it’s still active and sending telemetry and data to Microsoft. And it’s not the same as Copilot for Windows or Bing, etc. We understand that there are several, if not hundreds, of Copilot tentacles now in Windows. And with each Windows, Edge or 365 update, Copilot reinstalls.
So, regardless of what you read, it’s damned near impossible to remove Copilot and its evil clones. It still lurks.
Microsoft 365 with Copilot, Microsoft 365 with Copilot, Microsoft 365 with Copilot, Microsoft 365 with Copilot
23 comments
Richard Hill
I have received two email corrections so far. What I find confusing is
Option 2: Switch to Microsoft 365 Family Classic and receive a refund
“While Microsoft 365 Family Classic includes the core Microsoft 365 apps and regular security updates, it does not include our AI assistant Copilot and may not receive new feature updates.”
Can anyone confirm that Microsoft 365 Family Classic will definitely get features updates? I probably use about 5% of the features so may be this is not a big deal. If they decide not to add new features then I am paying $139 p/a for a product that stuck at 2024. If you only use Word, Excel and Powerpoint then a one off purchase Office Home 2024 for $249 might be a better option
$40 per year ( $3.33 per month) is not a lot to pay for a product that is fully supported so I will probably stick with my current plan.
Ray Shaw
MS has confirmed that the Classic version will not be updated. Short and curlies?
Richard Hill
Thank you for the confirmation Ray. The email from Microsoft was vague. I will stick with the $179 subscription as it suits my purposes.
phil squire
Hi Ray
I disagree. The world as Windows and 365 what it needs is a decent competitor so that Microsoft are forced to start acting in a decent manner. Microsoft is the perfect example of what happens when a company is all powerful in a given market.
Ray Shaw
Hi Phil — I am not sure what you disagree with, but I totally agree that Microsoft’s dominance of the Office Suite has allowed it to behave scurrilously. I recommend the free Libra Office (open-source) and if push comes to shove I couold use it. I dont need all this AI BS changing my words aad meanings.
Mike
we have Microsoft365 family and have been locked out of Microsoft applications, word and excel, can use them but when we try to save a document it says you must activate the account. We try to acticvate the account we may get an activation code 24 hours later and this code docent work. We can still access one drive. I have tried to call/contact Microsoft and get no reply. Can you suggest a way forward?
We were also forced on to the more expensive version via the App Store and it would appear we can’t get a refund is this correct?
Ray Shaw
Did you buy direct from Microsoft online, or a bricks and mortar retailer, or another so-called online reseller? What you have is an activation issue, and whoever you bought it from has supplied a fake activation code. You will need to go back to where you bought it and request a code that works. If you bought from the Microsoft Store and had activated the product, you would have received a refund email. Let me know how you go.
Mike
We have had this version of 365 for over 4 years and had no issues with it, we have just come across this issue in the last week where it’s saying we have to activate to use Microsoft Excel and Microsoft Word. I cannot activate it nor reset my password because the activation code doesn’t get sent. I’ve tried calling Microsoft but the number is not connected, I can’t believe such a big company cannot be contacted via phone. All the help guides that Microsoft have provided are irrelevant because it gives me an option on the Help guides to choose a mobile number to get the activation code but we don’t have this as an option when we try and activate it.
we have subscribed for this product through the Apple App Store, so I assume we won’t be getting a refund, in fact we can’t even use it at the moment because of this issue.
Ray Shaw
It is a bit hard to remote diagnose this. I am stumped. Buying via Apple should be safe, and perhaps you should start there
David Kennedy
I have never used 365, I buy Office and it may be more at first, but costs nothing after purchase.
I still get automatic updates.
On another matter, all the trouble with BOM and their change on web site, the App was never altered on my phone and iPad,so still had old maps
Ray Shaw
Office 365 is a retail product that receives updates for one year only, so if you buy in 2025, that is it. Office updates are frequently for security. Microsoft 365 is an annual subscription, and it is always up to date. The problem is that the Office 365 version is lousy with counterfeits https://www.google.com/search?udm=28&q=windows+microsoft+office+365, and unscrupulous resellers call it a ‘lifetime’ licence. Often, online sales require you to download the software from Microsoft, and you receive an activation key. I did this a few years back, getting a bargain for Office 365 Family for $40. It took 20 attempts to get a licence key that worked.
As for BOM, we found that issue. You have to delete the old app and download a new one instead of BOM updating it for you.
JANDRA BERG
I sent notice to Microsoft months ago saying I think I have 2 accounts? Haven’t had an acknowledgment from them???
Jan
Ray Shaw
I feel your pain. I don’t think MS has ever answered an email from me either. Here aer instructions to remove an account https://support.microsoft.com/en-au/account-billing/how-to-close-your-microsoft-account-c1b2d13f-4de6-6e1b-4a31-d9d668849979. Data and emails should be copioed/forwarded to the other account.
Patrick Gauci
I have received their emails including the last one very recently with an apology !!
I have switched to Classic and anticipate the refund of $ 50 at some stage in the future, however I’m frankly very doubtful that this will eventuate and certainly not holding my breath !!??
It is a most distressing and a very sad sign of the times that like many large corporates unless I missed it? there did not appear to be a “help line” contact phone number to speak to a human !!!!
Mark Deason
I am still waiting to be contacted regarding my refund for the increased price
Clarence Dempsey
Mark,
I’ve received 3 emails including the following extract from the last one.
The way I read it after reverting to Classic is … the refund will be the reduction to the new/original Classic price … hope I’m wrong.
“Microsoft 365 Family will convert to Microsoft 365 Family Classic on 00 ??????? 2026
Thank you for switching your Microsoft 365 Family subscription to Microsoft 365 Family Classic. Starting on 00 ??????? 2026, we’ll charge the current price of AUD 139.00 including taxes to your ???????? ?/? every year.
We’ll tell you if this price ever changes. You can manage your subscription or cancel any time to stop future charges by visiting your Microsoft account dashboard. For more information, learn about how to cancel your subscription.
We hope you enjoy Microsoft 365 Family Classic.”
Ray Shaw
Thanks for the update. As far as I know, people have been receiving a prorata discount based on the time from Copilot purchase to change to Classic. That is fair.
Clarence
Ray,
Thank you for the followup, your comment is logical and balanced, bottomline is, there is no free ride.
Ray Shaw
Hi Mark
They are only refunding direct MS online purchases. No retail or online resellers.
Mark Deason
Hi
It was a Microsoft renewal
So I am not sure what to do, the thought of going on the Microsoft website is daunting
I will pushed around in circles, I hate going on their website
Ray Shaw
Microsoft Support phone numbers are 1800 624 449 and 1800 197 960. I would try that first and make sure you have your invoice/receipt before you dial.
Mark Chapman
When the price went from $109 to $159
I tried to ring Microsoft to cancel my subscription but of course you can’t speak to a real person, and they took the money out, I will never buy anything from them again
Ray Shaw
Let’s hope they learnt a lesson. Unfortunately, the world needs Windows and 365.