Apple misled customers about their consumer rights, watchdog finds

Apple agrees to court-enforceable agreement to ensure staff inform customers of rights under Australian consumer law

Apple has agreed to improve staff training and provide a more informative website regarding consumer rights and Apple policies. Photograph: Dan Himbrechts/AAP

Apple has come to a court-enforceable agreement with the Australian Competition and Consumer Commission (ACCC) after investigations by the watchdog found the computer giant was misleading some consumers about their rights to refunds, replacements, and repairs.

The ACCC expressed concern that Apple was applying its own policy to customers, and ignoring the Australian consumer law (ACL), particularly with the company’s 14-day returns policy, 12-month limited manufacturer’s warranties, and offers of store credit for faulty returns instead of refunds.

The ACL, which came into effect in 2011, enshrines protections for consumers purchasing goods and services, including that if they buy a faulty product they are entitled to a refund, replacement or repair, depending on the level of faultiness. Suppliers may be contravening the ACL if they tell customers they are not entitled to these protections.

The ACCC chairman, Rod Sims, said: “The ACL consumer guarantees have no set expiry date. The guarantees apply for the amount of time that it is reasonable to expect given the cost and quality of the item or any representations made about the item.”

After their investigation, the ACCC raised concerns with Apple that Apple staff had told customers the company was not obliged to offer refunds, repairs or replacements for faulty goods.

The ACCC also found that some customers who bought faulty non-Apple products from the Apple store were not given redress and were instead sent to the manufacturers of the faulty item.

Apple has acknowledged some of the ACCC’s accusations and has admitted that some staff may have made misleading representations to customers, according to a statement from the ACCC.

Apple has agreed to undertake compliance measures for a minimum of two years, including improving staff training and a more informative website regarding consumer rights and Apple policies, as well as a commitment not to make misleading representations to customers which are “contrary to the ACL”.

“This undertaking serves as an important reminder to businesses that while voluntary or express warranties can provide services in addition to the consumer guarantee rights of the ACL, they cannot replace or remove those ACL guarantee rights,” said Sims.

The undertaking applies to iPods, iPhones, iPads, MacBooks, iMacs and peripherals, as well as non-Apple products bought in Apple stores, and products or software bought from iTunes or the App Store. As part of the agreement, Apple will reassess all claims made by customers over the last two years and provide customers with what they were legally entitled to.

A spokesman for Apple told Guardian Australia: "Apple is dedicated to making the best products in the world and delivering unmatched customer service everywhere we do business.

"In Australia we have been working closely with the ACCC to make sure our customers understand their local consumer rights and receive the industry-leading customer service they expect.