Microsoft customers who were allegedly misled into paying for more expensive software plans say a refund offer from the company glitched, as Australia’s consumer watchdog vows to push ahead with legal action seeking penalties and redress from the tech giant.

The tech giant apologised and offered refunds to customers on Thursday after the Australian Competition and Consumer Commission (ACCC) last week alleged in the Federal Court that Microsoft misled 2.7 million Australians over subscription costs so they would remain on more expensive plans.

The ACCC’s allegations relate to how Microsoft communicated price increases to customers of its Copilot AI assistant and Microsoft 365 plans, which include software such as Word, Excel and PowerPoint.

The consumer watchdog claims that since Octob

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