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Beware Microsoft 365 buying traps from Amazon, Best Buy and more

With help from major retailers, Microsoft has another way to make people pay more for Microsoft 365 Family or Personal. Amazon and Best Buy and other offer Microsoft 365 renewals charging full price for the first and later years.

Ever since Microsoft 365 plans started, Microsoft has enticed people with low prices in the first year then automatic full price renewals in later years. The lower Microsoft 365 prices were from retailers who regularly undercut Microsoft’s prices by 20% and more.

For just as long, Office Watch has explained how easy it is to continue paying less for renewals.  Just buy another year or more of Microsoft 365 retail and use the product key to top up your existing plan.  Get Microsoft 365 for less money.

Now the major retailers sign you up for automatic renewals at full price — more profit for Microsoft and the retailer – not great for customers.

This is done by major retailers like Amazon and Best Buy. Online app stores from Apple and Google plus some computer makers like Dell.

The renewal is at full price charged by the retailer.

It’s the same high price trick that Microsoft uses, except the retailer manages the renewal and gets a percentagle.

In effect, Microsoft is allowing large retailers to become partners in very profitable Microsoft 365 renewals.

The really sad thing is that this trick will work.  Most people just blindly follow the default options offered without considering alternatives.  It’s not just Microsoft 365 renewals that are a trap. Almost any ongoing charge like insurance, subscriptions, phone plans etc. are likely to charge more than necessary.

Since the retailers are charging full price, there’s no good reason to buy from them. Just as good to buy direct from Microsoft, you’ll pay the same with the advantage of being able to deal direct and extend your subscription at a discount.

Less control of your subscription

The ‘partner’ auto-renewing trick is worse than first appears because that company has full control of the Microsoft 365 plan. Microsoft has passed control of your subscription to the partner.

That means you can’t cancel the Family or Personal plan direct with Microsoft, you have to ask the partner company.

Automatic renewals also can’t be cancelled by Microsoft. Ask the selling company to stop auto-renewals.

Extending an existing Microsoft 365 plan beyond a year isn’t allowed. Only auto-renewals from the original ‘partner’ seller are permitted, at full price.

Best Buy

Here’s how it works.  Microsoft 365 Family at Best Buy in the USA is an ‘Auto Renew’ product but that’s NOT mentioned in the main description.

Best Buy did have the vital phrase ‘auto renewal’ in the lead text but it’s been dropped.

Down in the product details it’s explained that the renewal is through Best Buy and cancelling requires a phone call.  Presumably the phone call requirement is to make it a little harder to cancel, compared to an online option.

Automatically renewing Microsoft 365 Family subscription will renew each year for $129.99 (or then-current price) unless cancelled before yearly renewal date by calling 1-888-BestBuy.

Amazon

It’s a little clearer on Amazon USA.  At present there are two Microsoft 365 Family/Personal options called ‘Auto renewing subscription’. Both require automatic renewal by Amazon as disclosed in the fine print under the ‘Add to Cart’ button.

Amazon US – Microsoft 365 Family with ‘1-year plan’ aka automatic renewal.

At least customers can cancel Amazon’s automatic renewal from the ‘Digital Software Subscription Asset Manager’ part of their Amazon account. No phone call required.

Other ‘partners’

Microsoft lists Amazon, Apple, Best Buy, or Google Play as partners in this scheme but there are others.

We know the computer maker Dell also uses this auto-renewal trap. Presumably other computer sellers do the same.

Why?

Obviously, we don’t know what happened between Microsoft and the retailers.

The advantages for both parties are clear.  So are the DISadvantages to customers.

Retailers would not have liked selling a year of Microsoft 365 then seeing Microsoft get all the renewal income for the later years. They were losing business on Office sales that they’d been getting for many years.

The compromise seems to be Microsoft allowing retailers a piece of the renewal income in exchange for fewer discounts on sales of single year Microsoft 365 plans.

What can customers do?

Our money saving advice still stands.

Do NOT automatically renew Microsoft 365 – either direct from Microsoft or a retailer.

If you must or have bought an ‘auto renew’ plan, you can still cancel the auto-renewal at any time.

Discounted and legal Microsoft 365 single year products are a little harder to find.  Presumably there are retailers out there willing to discount.

Microsoft, their retail partners and customers will have to deal with renewal confusion in the years ahead. There will be customers who bought Microsoft 365 not realizing they’d bought an normal auto-renewing product not a single purchase.

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