Apple on Tuesday was hit by a huge fine of AUS$9 million (US$6.7 million) by an Australian court for making false claims about consumer rights because the firm declined to fix faulty iPhones and iPads.
Apple bluntly acknowledges consumer rights and its protection but the Australian court founds it to be a false claim when the company refused to repair the damaged or faulty phones which the company used to get fixed by a third party.
Apple customers made a complaint to Australian Competition and Consumer Commission (ACCC) after their devices were disabled with an operating system update in a global issue “error 53”.
Apple told consumers they are not eligible for the iPhone and iPad repairs if the phone had been previously repaired by another company, Apple was taken to Federal Court by ACCC over false representations to consumers about their rights under the law.
ACCC Commissioner Sarah Court said in a statement, “If the device is faulty, the consumers are legally entitled to get repair, replacement or refund according to Australian Consumer Law.”
“The court declared on Tuesday, that the device being repaired by the company other than Apple, could not result in consumer guarantees revocation, nor the consumer right could be undermined.”
Apple admits at least 275 Australian consumers have been misled by the company between Feb 2015 to 2016 on various outlets including US website, Australian store and customer service call center.
Apple has also ensured the company will provide the customers with new devices amid allegations that the company hands over refurbished devices to consumers after the device had a fatal failure.
Apple said on Tuesday, that it had a very progressive conversation with the Australian ACCC and the company pledged to provide its customers with excellent service.