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Home / Business

Apple fined $9 million for misleading Australian customers

NZ Herald
19 Jun, 2018 12:23 AMQuick Read

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Apple has been fined by an Australian Federal Court after "error 53" complaints. Photo / Getty Images

Apple has been fined by an Australian Federal Court after "error 53" complaints. Photo / Getty Images

Apple has been fined A$9 million ($9.6m) by an Australian Federal Court for making false or misleading representations to customers.

The Australian Consumer and Competition Commission (ACCC) took action against Apple US, and its Australian subsidiary Apple Pty Ltd, following an investigation over complaints about "error 53" which disabled some iPhones and iPads after an operating system update was downloaded, according to the Sydney Morning Herald.

According to ABC News, Apple admitted that it misled at least 275 Australian customers between February 2015 and February 2016 by informing them they were no longer entitled to remedies if their device had been repaired by a third party.

"If a product is faulty, customers are legally entitled to a repair or a replacement under the Australian Consumer Law, and sometimes even a refund," ACCC Commissioner Sarah Court said.

"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, or the consumer's right to a remedy being extinguished.

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"Global companies must ensure their returns policies are compliant with the Australian Consumer Law, or they will face ACCC action."

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