Lawsuits Spread as Apple Continues Under Pressure to Resolve Warranty Issues in Europe

Following multiple fines in Italy over what regulators have called inadequate disclosure of consumer warranty rights, Apple is facing continued scrutiny in the broader European Union, with Dow Jones Business news reporting that Apple is now facing lawsuits from consumer associations in Belgium, Germany, Luxembourg, and Portugal.

Apple was taken to task today in a speech by EU Justice Commissioner Viviane Reding, who had previously encouraged member countries to follow Italy's lead in examining Apple's practices.

"This case and the responses I received since I sent my letter have highlighted rather clearly just why the Commission cannot sit on the side-lines on enforcement issues," she said. "The approaches to enforcement in these types of cases turn out to be very diversified and inconsistent at a national level. In at least 21 EU Member States Apple is not informing consumers correctly about the legal warranty rights they have. This is simply not good enough."

Concerns over Apple's actions relate to its promotion of AppleCare as an extended warranty program on top of the standard one-year warranty Apple offers on its products. EU consumer laws require two years of protection, and the company has been accused of not sharing that information with customers while trying to sell them AppleCare coverage.

Apple does, however, note on its website that there are a number of differences between the protection required by EU consumer laws and Apple's own standard and AppleCare warranty packages, differences that it no doubt believes still make AppleCare a worthwhile purchase for many customers.

Apple's continued difficulties in Europe come just as the company has quietly adjusted its practices in Australia to comply with consumer protection laws in that country requiring coverage for a "reasonable" time from the date of purchase. [Source]

You can follow me on Twitter, add me to your circles on Google+ or Subscribe to me on facebook or YouTube. You can also check my website and blog to keep yourself updated with what is happening in the ever changing world of technology

Apple Makes Adjustments to Warranty Coverage so it Complies With Consumer Laws

Australian law requires that sellers of products offer warranties for "a reasonable period from date of delivery until the failure becomes apparent". This has been interpreted as two-years for computers. Apple's standard warranty on all products runs for one-year, while AppleCare extends coverage to three years on Macs.

The Sydney Morning Herald writes of the warranty requirements, including that Apple Retail Store employees and authorized resellers have been notified of a change in how Apple handles warranty claims in the country.

On Friday, Apple's Australian retail store staff and authorised Apple resellers were notified about a change to Apple's internal policy on how it handled standard warranty claims.

Until now, many Apple consumers have reported on forums that store staff have only ever discussed with them a standard 12-month manufacturer warranty when selling, fixing or replacing Apple goods.

Apple has now changed this from 12 months to 24, which appears to bring it in line with Australian Consumer Law.

The consumer protection law, which Apple details in a page on its website, requires purchasers to contact the seller of a product for a warranty claim rather than the manufacturer. This means that if a Mac is purchased from a non-Apple retailer, that retailer is responsible for satisfying the requirements of the Australian law. It also means that Apple is responsible for warranty claims on third-party products purchased at Apple Retail Stores.

Apple notes that consumers can receive warranty coverage under the Australian consumer law, Apple's standard one-year warranty, or AppleCare, whichever is applicable.

The company had previously gotten in trouble over its AppleCare practices in Italy -- that country has a similar consumer protection law and Apple was fined more than a million dollars because it did not sufficiently notify customers about the standard warranties available to them under Italian law. [Source]

You can follow me on Twitter, add me to your circles on Google+ or Subscribe to me on facebook or YouTube. You can also check my website and blog to keep yourself updated with what is happening in the ever changing world of technology

Apple Care Under Attack in Europe

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]

You can follow me on Twitter, add me to your circles on Google+ or Subscribe to me on FaceBook or YouTube. You can also check my Website and Blog to keep yourself updated with what is happening in the ever changing world of technology