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Apple Fined $1.2 Million in Italy Over Warranty Disclosure Issues

Tuesday December 27, 2011 6:00 am PST by Eric Slivka

Reuters reports that Apple has been fined the equivalent of $1.2 million in Italy over issues related to warranty disclosures.

According to the report, Italy's antitrust regulators ruled that Apple has not been providing adequate disclosures about the two free years of product warranty assistance required under Italian law, while also pushing customers to purchase AppleCare extended warranties without disclosing that many of the benefits overlap the standard warranty.

The authority said Apple Sales International, Apple Italia and Apple Retail Italia did not properly inform customers that they were entitled to two years of free assistance under Italian law. Three Apple spokesmen contacted by Reuters weren't immediately available for comment.

Information provided about an extra guarantee scheme, the "AppleCare Protection Plan," encouraged customers to buy the service without clearly explaining that it overlapped with the free assistance required by law, the competition authority said.

News of Italian regulators' inquiries into Apple's warranty offering surfaced in late May. Word on any fines levied on Apple was said to be set to follow by late August, but the agency apparently took some additional time to examine the issue before reaching a decision.

Top Rated Comments

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iekozz

99 months ago

This is not just happening in Italy, but EU wide. There is a standard 2-year warrenty for all pc/laptops ect here.

The fine is 100% correct and could be higher.

Rating: 31 Votes

alex00100

99 months ago

persanally, i fully agree.
1 year is too little and making people spend even more $ for safety aside those $$$ for products is totally wrong.

Rating: 15 Votes

neiltc13

99 months ago

The EU is collapsing, and this is what they spend their time with?

This is nothing to do with the EU. It is about the enforcement of laws created by the EU in Italy as it is the responsibility of all member states to implement EU law.

Given that the dollar/euro exchange rate is prone to fluctuate, it would be more accurate to quote the fine in the terms in which is was levied (ca. €900,000 I think I read on the BBC)

Agreed. I think it is insulting that the author thinks his audience does not know how much €900,000 is.

Rating: 11 Votes

Shrink

99 months ago

1.2 million?! Apple is finished!

For better or worse, Tim Cook could find $1.2 million between the cushions of the couch in the executive lounge.:rolleyes:

Rating: 9 Votes

gpat

99 months ago

The EU is collapsing, and this is what they spend their time with?

Just wait until you know how deep the sh*it is in America.

Rating: 7 Votes

rocknblogger

99 months ago

The EU is collapsing, and this is what they spend their time with?

Yeah shame on them for looking out for their citizens.

Rating: 6 Votes

Angryipadguy

99 months ago

Slow down, cowboy. In the UK, the product has to last "a reasonable time", which depends on the product. And after more than six months (if the manufacturer didn't give you a years warranty) you have to _prove_ that the fault was present when you bought the product.

Now if you have a problem with an Apple product bought at an Apple Store, chances are quite good that you will get it fixed for free. With other stores, they can put up a fight (as will Apple, depending on the situation, and maybe depending on how much of a jerk the customer is). They can just ask you to prove that the fault was present when you bought the product. Which means finding someone who is competent with that kind of product, checking it, and writing a report for you. Obviously that means a customer was lost forever, but if the seller doesn't care, things are difficult.

I am sure Apple will now tell you before you buy AppleCare that you may have rights beyond your warranty, depending on the exact situation. You can then decide whether you want to take your chances or not. And remember that AppleCare also gives you one year free support, and will cover your device in situations where it is not covered by the law.

This is not ture. you do not have to prove anything just like the Magnum-Moss Warranty Act for vehicles. its upto them to prove it was not the products fault. Also a problem does not have to be present when you bought the product at all. i have sold electronics for over 25 years and this has never been the case. there would be uproar if it was.

Rating: 6 Votes

Truffy

99 months ago

Given that the dollar/euro exchange rate is prone to fluctuate, it would be more accurate to quote the fine in the terms in which is was levied (ca. 900,000 I think I read on the BBC)

Rating: 5 Votes

kurosov

99 months ago

I recently move to UK and I couldn't believe that everywhere they were saying about 1 year warranty. I even had a strong arguement with a Game store manager when I bought my PS3, cause I knew that all electronic devices, including PS3 should have 2 years warranty base on EU law. I 'm studying Computing and in a lecture about Data Protection Law we cover cases where the EU law overlaps UK law and the EU should be consider to be the valid one. I think people should be informed about this and ask for their extra year instead of having to "buy" it, like Dell, PCWorld and other electronics giants in the UK marketplace wants.

In the UK we don't have just the 2 year warranty. For items like washing machines they are expected to work fault free for the expected lifetime of the machine. Meaning you are protected from faults on such things for 5-10 years in some cases. The amount of TV shows and consumer rights articles/pamphlets around explaining these rights is excessive enough.

Store managers are just morons who get promoted because they make a better lackey than the rest of the staff, Assert your rights and there is little they can do. I usually bring a dictaphone and start recording a conversation if it gets heated on their side.

Rating: 5 Votes

samcraig

99 months ago

I think it's pretty sad that more than one poster here wants to turn this into a debate about what other companies (not Apple) is doing and also about what state the country is in, etc.

All irrelevant. This story is about Apple and the judgement against them. And some people are complaining that Apple isn't wrong? That other companies are just as wrong? That's like arguing with a cop when you're pulled over for speeding and trying to get out of the ticket because other people were speeding too. Yes. Valid statement. But it doesn't make your violation any different. You got caught. You're the one who was pulled over.

I don't know how Italy's laws and lawsuits work. Maybe this 1.2 million fine is a gateway for a huge class action lawsuit which would be a lot easier for plaintiffs to win if Apple has already been fined for the practice. Again - I have no idea and someone with actual law experience IN Italy might shed better light.

Regardless - I don't see how anyone can argue that Apple shouldn't be fined or that the consumer shouldn't be protected. I know there are plenty of people on this forum who take full advantage (and by that I mean sometimes crossing the lines of ethics, etc) of AppleCare and/or Apple Store's Genius Bar and then brag about it on here.

But by all mean - let's put Apple before the consumer...

Rating: 4 Votes

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