Microsoft has offered to refund the millions of Australians it misled into paying higher prices for its artificial intelligence product Copilot through deceptive marketing.

The Australian Competition and Consumer Commission last month took the local arm of the US$3.8 trillion tech giant to court for failing to properly communicate its subscription options and prices for Microsoft 365.

The company had told users to accept the integration of Copilot and pay a 45 per cent mark up or cancel their subscription.

Users could continue using the original plan if they went to cancel their subscription and find an option to stay on their plan without the AI product.

Microsoft sent an email to users apologising for the deceptive tactic and said it will refund impacted customers who wish to switch

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