Microsoft Flooded with Refund Requests After Tricking Millions of Australians into Buying Unwanted AI Copilot on Office
Australian Financial Review
SKIPPED
Details
- Date Published
- 4 Nov 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 6 Nov 2025, 04:54 pm
Description
The software company wrote to Australian customers to apologise for a lack of transparency when it increased fees for Office plans by up to 45 per cent.
Summary
Microsoft faces backlash in Australia after numerous customers reported being misled into purchasing AI Copilot upgrades for Office, leading to refund requests from up to 2.7 million consumers. This incident reflects challenges in transparent communication and customer trust regarding AI integration in existing products. While the situation primarily concerns consumer rights, its resolution could have implications for global AI governance, as it underscores the importance of clear policies on AI-related products. The article highlights significant dissatisfaction and potential economic impact on Microsoft's operations in Australia.
Body
TechnologySoftwarePrint articleAmelia McGuireBusiness reporterUpdatedNov 6, 2025 – 5.21pm,first published at9.00amSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginDisgruntled Microsoft customers, who were misled into buying more expensive subscriptions featuring its artificial intelligence Copilot chatbot, have flooded the technology giant with refund requests, leaving the company unable to immediately honour pledges to pay them back.Customers contactedThe Australian Financial Reviewto complain that Microsoft had underestimated the demand forcompensation from up to 2.7 million dissatisfied consumers. Microsoft then wrote to some of those affected to explain that it had accidentally sent the wrong link to unsubscribe.Loading...Amelia McGuirecovers technology from the AFR's Sydney newsroom. She was previously the aviation, tourism and gambling reporter for The Sydney Morning Herald and The Age.Connect withAmeliaonTwitter.EmailAmeliaata.mcguire@afr.com.auSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreSoftwareMicrosoftAIACCCConsumer rightsFetching latest articlesWe met a professional shoplifter to understand this crime’s popularityGreg Bearup and Carrie LaFrenzShaken, stirred and a little smoky: three cocktails to define summerThis restaurant is stuck in the past. That’s what makes it greatThe secret weapon boards are deploying to survive AGM seasonPatrick DurkinThe $1m nap: What truly separates great CEOs from the 5am clubThe real key to a promotion (and it’s not working harder)Chunky Celine rings and a new Cartier Santos to spice up your lifeEugenie KellyWhy you should be drinking this untrendy wineAn expert’s guide to vintage shopping in ParisBlundy’s turnaround plan sees profits double at Best & LessCampbell KwanBillionaire Brett Blundy pushes for Victoria’s Secret board seatInside a Young Rich Lister’s million-dollar home wellness space