Apple hit with class action lawsuit

“A class action lawsuit has been filed against Apple Computer with two classes, one for Apple resellers and the other for consumers, AppleInsider has learned. In the 26-page complaint, filed in the San Francisco County Superior Court in California on Thursday, a group of consumers and Apple resellers allege that Apple has engaged in acts of unfair and unlawful business practices, breach of contract, and misappropriation of trade secrets. These actions have also resulted in violations of the Consumers Legal Remedies Act and Song Beverly Act, the suit claims,’ Kasper Jade and Prince McLean report for AppleInsider.

“The class action lawsuit was filed by three firms on behalf of Jack Branning, James Seybert, Stacey Blevins, Tom Siechert and Joe Weingarten. Together they accuse Apple of repackaging and selling refurbished machines to resellers and consumers as ‘new products’ without notification to the reseller or end customer. They say Apple has not always honored its extended warranty contracts known as Apple Care, and have often shorted consumers on the term of new product warranties,” Jade and McLean report. “The plaintiffs also charge the company with further warranty abuse, and failure to extend warranty dates based on the time it takes to repair a product… Resellers are also charging the company with unfair and unlawful competition, saying Apple has stocked its own retail stores before the retail channel in an effort to recruit customers to its own sales channels. They also allege Apple has used unfair pricing policies. The suit says Apple has sold Macs to end users at prices below their own wholesales costs, and that Apple has made promises to sell its products below the price of any other Authorized Apple Reseller.”

Full article with more details here.

24 Comments

  1. I appreciate the fact that Apple has to play hardball in business to make sure they keep making profits and are able to continue producing great computers but I DO wish they would take a little more care to do the right thing and maintain a good corporate image.

    I feel really friendly to Apple because I love their products and love their style and love the fact that they focus so much on user experience. So I really hate having to read about actions by Corporate Apple that I ethically disagree with and that I wish they would cease and desist. They have been doing great and should be able to be a bit more of the “nice guy” and should make sure they treat the people who are on their side right – especially resellers.

  2. They are just looking for some quick cash and out of court settlement.

    The apple stores take returns and Clearly mark them down, while best buy will see you returns as new.

  3. “For example, if Apple spends a month to repair a customer’s iBook, the suit says that Apple is obligated to extend the warranty period one month because the product was not in the consumer’s hands.”

    A month?! I had an iBook repaired under warranty. It took 6 days, including a weekend and waiting for a backordered part. 1st day, I was informed a box for shipping would be coming the next day. 2nd day I recieved it and shipped it. 3rd day (a Saturday) Apple recieved it. 4th day (Sunday) I was informed that the replacement part was back-ordered. 5th day I was informed that the part came in, it was repaired and would be sent back to me. 6th day i had it back.

    Granted, they didn’t extend my warranty by 6 days (and I didn’t ask), but that’s a pretty awesome turn-around.

  4. “For example, if Apple spends a month to repair a customer’s iBook, the suit says that Apple is obligated to extend the warranty period one month because the product was not in the consumer’s hands.”

    I know of no consumer electronics company that does this.

    Can anyone list any major consumer electronics company where this is standard policy?

  5. I have never had any problems with getting repairs or service under the warranty period. And I would like to know what proof these people have that shows that Apple is repackaging used equipment as new. That is a stretch of a claim. Apple takes pride in its corporate image and I would hope that they would not do something as stupid as that to tarnish their image.

  6. I hope they have evidence, otherwise this will be short and sweet for Apple to get rid of. And I mean evidence other than people complaining that their iMac showed up with one dead pixel so they want whole new mac because they think its covered under their Applecare warrenty. I don’t even think Dell would accept anything back with one dead pixel, but I’m sure these (in this law suit) people are complaining about things like this.

    “failure to extend warranty dates based on the time it takes to repair a product” And they are also complaining about that a warrenty should be extended to give them some extra days due to the fact that their mac was in the shop. Hell, car makers don’t give you an extended warrenty after you have to have engine work done that takes a week to get your car back to you, they don’t extend the warrenty to the amount that you were without your car.

    As for Resellers, i thought the Apple stores were having trouble keeping stock, and that they are on top of the list. So if some place is selling more, as the distributer, are you allowed to move shippments to where it will sell. Walmart moves pop tarts to places with bad weather due to people buy more when a hurricane is coming in. Do we sue walmart for doing that when my local Supermarket has no poptarts because walmart has bought them all and shipped them else where.

    God damn, we Americans will do anything to get a few bucks and to have our names in lights.

  7. The Apple stores were all out of stock of Shuffles, but Microcenter, Best Buy, etc all had plenty in stock. I got my Mac Mini on release day, but I’m guessing Microcenter still has a few in stock while the Apple store are still out.

  8. I suspected as much. 25 MDD G4’s arriving the same day. 24 nearly similar MAC addresses, 1 ‘where the hell did that come from.’ That one being the one with a history of kernal panics for us. Not proof of repackaging of course but makes one wonder if it was once someone else’s problem.

  9. What a load of BS. Although, I think they could improve their customer service in some areas. My Dad bought his new 20″ iMac the day before MWSF2005 (the 14th computer he purchased from them in 22 years) and they refused to give him iLife 05 for free because he was one day from the cutoff. Actually he placed his order the day before MWSF05. His credit card wasn’t charged for two days after that and he didn’t get the computer until two days after that. Oh well, I guess the lesson is, even if you don’t expect the computer you want to be updated at MW, don’t buy until the day of the Keynote!

  10. The resellers are not representing the new Apple and are crying because they are losing buisness.

    For crying out loud some of them are still using websites and multicolored Apple logo material from 15 years ago.

    They should feel proud that things are changing for the better for Apple, this obviously means they need to go, they should have made plenty of bucks during the reign of f^^kups like John Scully and all the CEO’s that came afterwards when Jobs was out of the company.

    This is the new Apple, Steve Jobs knows what the f^^k he’s doing, he also runs the successful Pixar, he doesn’t need to “redo” Apple, but he is and the stock is skyrocketing.

    This is every Mac owners dream, to not feel such a excluded minority platform anymore and all these f^^king reseller assholes can do is cry like babies.

    Apple should just cut them off, f^^k em.

    Get on the program or get off. F^^king reseller losers.

    Yea “they” kept Apple alive TRUE, but now they are not needed anymore and need to move their whining a$$es on.

    Again they should have made plenty of bucks all these years, go out and make new Mac users you lazy frigging whining a$$holes.

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