Apple has been fined $9 million for making false or misleading representations to customers with faulty iPhones and iPads about their consumer rights.
The Australian Consumer and Competition Commission (ACCC) took action against Apple US and its Australian subsidiary, Apple Pty Ltd, in the Federal Court.
The court action was the result of the ACCC’s investigation into consumer complaints relating to “error 53”. This error-disabled some iPhones and iPads after customers downloaded an update to Apple’s iOS operating system.
The US-based technology company admitted that it misled at least 275 Australian customers — by informing them they were no longer entitled to remedies, like a repair or replacement if their device had been repaired by a third party.
Apple made these representations between February 2015 and February 2016 — on its US website, in-store and on its customer service phone calls.
“The court declared the mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply,” Commissioner Sarah Court said.
Apple’s spokesperson responded to the ACCC’s claims in a statement said: “We’re constantly looking for ways to enhance the service we deliver and we had very productive conversations with the ACCC about this. We will continue to do all we can to deliver excellent service to all of our customers in Australia.”
The regulator said Apple had implemented an “outreach program” to compensate about 5,000 customers whose devices were rendered inoperable by “error 53”. Apple’s Australian subsidiary has also made a court enforceable undertaking.
As part of the undertaking, Apple has promised to make improvements to staff training and its procedures so that they comply with consumer laws in the future.
