Apple busted for dubious Applecare selling

Apple has been fined more than a million dollars in Italy for misleading customers about their warranty rights.

Italian law says customers are legally entitled to a free two-year warranty and technical support on electronic goods. However, Apple staff kept quiet about this when selling to customers, instead detailing Apple’s standard one-year warranty and then encouraging them to take out Applecare, an extended warranty. They didn’t inform customers that the first year of Applecare would overlap with the second year of the statutory warranty period.

Italy’s Antitrust Authority fined Apple’s Italian subsidiaries a total of 900,000 euros (US$1.2 million): 400,000 euros for failing to provide the full two-year warranty as standard, and a further 500,000 euros for selling Applecare in a misleading manner. The 400,000 euro fine was slightly lower to recognize that Apple has taken steps to better highlight the statutory rights since coming under investigation.

The company must publish details of the ruling on its website and now has 90 days to revise the literature for Applecare to make clear that customers automatically get two-years coverage without charge.

Apple hasn’t yet commented on the ruling, or whether it will change the time at which Applecare kicks in for the Italian market.

Another Italian electronics retailer, Comet, escaped fines over similar breaches. The Antitrust Authority noted that Comet had begun fully informing customers of the two-year warranty before it began formal proceedings and simply ruled that Comet be bound to stick to this change of policy.

7 Responses to Apple busted for dubious Applecare selling

  1. Meh, Apple will probably pull some BS excuse out of their collective rear ends and claim that Applecare offers services in the first year far beyond the standard statutory law dictates. They make great products but have unscrupulous business practices. Which is why I refuse to buy any of their product no matter how good it is.

  2. And yet their i Sheep will continue to treat them as if they can do no wrong. I've been saying this for year and will continue: Apple is worse then Microsoft ever was. Its just their user base will NEVER admit to it because they are still under this mentality that Apple is the little guy and needs to be defended at all costs. Hate to break this to you folks. Apple stopped being the little guy, for everything other then PC's, back in 2007 or so.

  3. Wow.. GAS wrote some tech news. It was on Apple and it was negative. Call me shocked and surprised. GAS do us a favor and stick to sexy girls in faux-comic-ware. There are plenty of other sites to get Apple news.

  4. read Apples state-by-state stipulations in the terms and conditions for both applecare and the standard mfg warranty. In Florida for example, they don't cover anything and the state handles any warranty claim, yet they still push it on people in FL.

  5. Apple cheating it's customers? *GASP*

    What else can we expect from a company founded by a man who entitles himself to the handicapped spot? They can't even pay their US taxes.

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