Dec 28, 2011

Apple to Pay $1.2 Million over Misleading Business Practices

Apple was ordered to pay a hefty fine of $1.2 million on misleading business practice charges in Italy.

Italy court slapped Apple with a fine of $1.2 million (aprox. 900,000 euros) for purportedly encouraging consumers to pay and sign up for its technical support, termed as AppleCare service.

According to local laws, every company in Italy is required to offer 2 years of free technical support for each and every product; however Apple was mischievously selling its AppleCare support service without educating customers about 2 years free support with a new product purchase.

As per Apple website: All Apple hardware comes with a one-year limited warranty and up to 90 days of complimentary telephone technical support. To extend your coverage further, purchase the AppleCare Protection Plan or AppleCare+ for iPhone.

Apple Care PlusAppleCare is one of the most important income generators out of after purchases. Apple provides different options to purchase protection plans on almost all of its products available in the market.

The AppleCare service is now known as AppleCare+, and costs about $99 which was updated earlier this year by Apple to offer technical support and any related manufacturer warranties for over 2 years. AppleCare+ also includes 2 accidental damage repairs as opposed to one in the previous plan.

Other popular protection plans from Apple cost about $59 for the iPod Touch, $349 for the MacBook Pro, whereas $169 for the ever-green iMac devices.

At the time of this publication, we hadn’t heard anything from Apple regarding misleading business practices and the fine slapped by government of Italy; however Apple need not worry about it, as the company has billions stashed away in banks from the sales of iProducts.

1 Comment

  • Thats a minor amount of money for apple. But its a major drawback in terms of publicity.