The Federal Court has ordered Apple to pay a $9 million fine after the company told some Australian iPhone and iPad owners that it wouldn't fix faulty devices because they had previously been repaired by a third party.
The court action was brought against Apple by the Australian Competition and Consumer Commission (ACCC) following complaints related to "error 53". Error 53 occurred after updating an iPhone or iPad that had non-original components to the latest version of iOS and left a device unusable. According to the ACCC, Apple staff told at least 275 customers that they wouldn't remedy this because their devices had previously been fixed by a non-Apple repairer.
ACCC Commissioner Sarah Court says this misled devices owners about their rights under Australian Consumer Law.
"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. Apple’s representations led customers to believe they’d be denied a remedy for their faulty device because they used a third party repairer," said Court.
"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."
The ACCC says Apple has reached out to about 5,000 consumers who may have been affected regarding compensation.
When error 53 first surfaced, Apple said it was protective feature to prevent third party components from potentially compromising a device. Around a fortnight later, the company released an update that would unbrick affected iPhones and iPads.
In addition, Apple has addressed concerns that it was replacing iPhones and iPads that had suffered a major failure with refurbished devices. Apple has committed to providing factory fresh devices in these circumstances if a customer request one.
"If people buy an iPhone or iPad from Apple and it suffers a major failure, they are entitled to a refund," said Court. "If customers would prefer a replacement, they are entitled to a new device as opposed to refurbished, if one is available."
Read more about your consumer rights here.
Alex Choros
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