Apple Facing Potential Suspension of Italian Sales Amid Warranty Concerns
Late last year, Apple was fined $1.2 million by Italian regulators over warranty-related issues, with Apple being cited for not adequately disclosing standard two-year warranties required to be offered with new products sold in the country.
Following the ruling, Apple temporarily added disclosures to its Italian online store even as it was appealing the decision. Apple officially lost its appeal earlier this year, with the company being required to pay the previously-assessed fine.
Reuters now reports that Italian regulators remain concerned about Apple's sales and marketing tactics and are considering additional fines and an eventual temporary ban on Apple's ability to sell products in the country as further sanctions.
The AGCM said in its monthly bulletin that Apple was continuing to adopt unfair commercial practices in Italy and noted this could eventually lead to the closure of its Italian operations for up to 30 days.
The U.S. group has 30 days to respond.
The AGCM alleges that information provided by Apple about an extra guarantee scheme encourages customers to buy the service without clearly explaining that the company is obliged to offer a two-year free warranty, the source said.
Italy is not the only country where Apple is facing criticism over its warranty policies. Earlier this year, consumer groups in eleven European Union countries filed letters of complaint with their respective regulatory agencies asking them to take action against Apple's misleading warranty sales tactics in light of the EU's requirement for a standard two-year warranty. The company clarified the differences between EU protection and Apple's warranty policies, but concerns about its disclosures apparently still remain.
Update: Apple takes issue with the Italian antitrust authority, saying in a statement:
We have introduced a number of measures to address the Italian competition authority concerns and we disagree with their latest complaint.
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Top Rated Comments
It's Apple (and whatever other company) job to inform in a right way and not to try to obscure the law term to sell extended guarantees.
It is an EU directive, not an Italian law, try again
First: This is European law NOT Italian.
Second: If you Americans are willing to pay so much money for gadgets that are only garrantied to run for...what?...90 days...go ahead...no wonder NOBODY except Americans purchase ****** American cars...
Third: The law actually states that in the first year of warranty the producer has to prove the user was handling it wrong, whilst the second year the user has to prove there was a material problem.
Fourth: I just purchased a new MacBook Air and decides against paying over 200€ for one additional year of warranty. What's the chance of a part failing in three year when it hasn't in the two years before? It's more like you have accidental damage or it get's stolen. I rather use the money to buy an insurance in that case.
Fifth: We have a lot of gadget that last decades...think Miele Washmachines...I actually expect them to hold out that long and Miele actually does give you their own 5 year warranty on it as many other manufactures do...Apple is cheeping out on everything to keep their high profit margin. They could easily give you a 5 year warranty as well, but why bother if you have sheeps like you fools you actually think THIS is the reason why Italian economy is bad.
Sixth: On that matter. It is actually a crisis of mostly banks here in Europe...and guess where it started: America...Sublime credits anyone? Just so that you guys can buy crappy houses and ****** car's that you really couldn't afford (including Apple products) the entire world economy has been screwed...So do us the favor and think before giving smart answers...
Seventh: Oh and Apple product are more expensive because of our VAT...we have 19% here in Germany...US has what?...0-10%?
A 2 year warranty also helps weed out the planned obsolescence of some products.
Apple is getting in trouble because its executives can't read. The law.
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How is that better than following the law like any other company and actually making a benefit to the consumer?
No, they're in trouble because they were still pushing customers toward AppleCare when it was largely worthless.