Apple’s
warranty plans have drawn the ire of a Belgian consumer watchdog agency,
Test-Aankoop/Test-Achats. The group has filed a complaint against the company over how
AppleCare is sold and marketed to customers, who in the EU by default are
entitled to a free two-year warranty with any consumer electronics
purchase. The complaint says Apple markets its warranties in a manner which
doesn’t properly explain consumer rights to Belgian gadget shoppers.
The decision
to pursue legal action comes only after Test-Aankoop/Test-Achats decided to
join up with 10 other Europe-based entities to make complaints about
how Apple operates its warranties, but now the group feels it is time to
escalate to a court case after efforts to petition the Mac maker have gone
unheard. The move also follows successful action in Italy regarding the same exact issue,
a case which the Belgian watchdog cites as a precedent, noting that Apple not
only had to pay a €900,000 penalty in that case, but also modified its
practices for the Italian market.
Why all the
fuss? There is lots of money to be made in value-added warranties, that’s why.
It’s not clear exactly how much Apple makes via AppleCare, which offers
consumers extended protection on their devices above Apple’s basic one-year
warranty, for an additional fee. But it is likely a lot; added warranties are
much higher profit than gadgets themselves, since many consumers never take
advantage of their services at all, more than compensating for the few who do
redeem them for expensive repairs or replacements. That’s why Apple isn’t
moving to change its practices in the EU for anything short of a court order to
do so, and why we may see others beyond the Belgian group pursue the same kind
of action. [TechCrunch]
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