Microsoft apologises to New Zealand users over unclear 365 plans

Microsoft has issued an apology to its Microsoft 365 Personal and Family subscribers in New Zealand after acknowledging shortcomings in how it communicated recent subscription changes, particularly following the introduction of new AI-powered features and pricing adjustments.

The technology company began contacting subscribers to clarify that alternatives to AI-enabled Microsoft 365 plans are available.

Subscriber communications

In an email sent to affected customers, Microsoft explained that it had not been sufficiently clear in its original messages about non-AI subscriptions. The email also outlined details of lower-priced alternatives that exclude the Copilot AI assistant and offered eligible subscribers a refund if they choose to switch plans.

"We have been present in New Zealand for more than 35 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."

The company's communications referred subscribers to two core options regarding their Microsoft 365 plans. The first option allows users to remain on their current Microsoft 365 Personal or Family subscription, which now includes the Copilot generative AI assistant and ongoing feature updates. These plans renew at NZD $17 per month for Personal or NZD $23 per month for Family, shown as a tax-inclusive price.

The second option, detailed in the correspondence, is to switch to the Microsoft 365 Personal or Family Classic plan. This offering retains the core applications and regular security updates but does not include the AI assistant Copilot and may not receive new feature updates. The Microsoft 365 Personal Classic plan is available for NZD $12 per month, and Family Classic is available for NZD $18 per month, again including all applicable taxes.

Refund eligibility and process

Subscribers who choose to switch to the Classic tier by 31 December 2025 are eligible for a refund. The refund covers the price difference between their original plan and the Classic plan, beginning from the subscriber's first renewal date after 30 November 2024. Refunds are processed to the payment method used for subscription within 30 days, and the adjustment is then reflected in the customer's Microsoft account.

This refund option is only available to subscribers in New Zealand who have received the email and switch to the Microsoft 365 Personal or Family Classic plan by the specified date. The communication stressed that recurring billing must be enabled to continue on the Classic plan after switching.

Transparency & change

Microsoft reiterated its commitment to customer trust and transparency in both the public apology and the direct customer email.

"Our relationship with our customers is based on trust and transparency and we apologise for falling short of our standards. We want to ensure you have all the information you need to make the choice that's right for you, so we are sharing that information below, including the opportunity to receive a refund."

In closing the customer communication, Microsoft sounds like they have learnt from the confusion.

"Thank you for being a Microsoft 365 subscriber. We're committed to making this process clear and improving your experience."