Apple Australia Gives ACCC Undertaking to Improve its Practices

 The ACCC has accepted a court enforceable undertaking from Apple following an investigation into Apple’s consumer guarantees policies and practices, and representations about consumers’ rights under the Australian Consumer Law (ACL) (Schedule 2 of the Competition and Consumer Act 2010 (Cth)).

The ACL came into at the beginning of 2011 and provides consumers with basic rights in relation to consumer goods sold in Australia. These cannot be excluded by a business’ terms and conditions of sale, and operate in addition to any express or voluntary warranties offered by businesses and . 

The ACCC had expressed concerns that Apple staff and representatives had misapplied Apple's policies, including its 14 day return policy and 12 month warranty, and had therefore made a number of false or misleading representations to consumers regarding their rights - including that Apple was not required to provide a refund, replacement or repair to consumers in circumstances where these remedies were required by the consumer guarantees in the ACL.

The ACCC was also concerned that Apple staff were directing consumers with faulty non-Apple manufactured products to the manufacturer for resolution of the consumer’s concerns.

Now, Apple has acknowledged the ACCC's concerns, and that some of these representations may have contravened the ACL.  Apple has said they are now committed to taking compliance measures and resolving these issues with the ACCC. 

 ACCC Chairman Rod Sims explained: 

In the undertaking Apple has acknowledged that it will provide its own remedies equivalent to those remedies in the consumer guarantee provisions of the ACL at any time within 24 months of the date of purchase.

Apple also confirmed that the Australian Consumer Law may provide for remedies beyond 24 months for a number of its products.

The undertaking requires Apple to:

• not make representations to consumers which the ACCC was concerned were contrary to the ACL;

• continue to offer a consumer redress program in which consumers potentially affected by the alleged conduct can go to Apple to have their claims re-assessed by Apple in accordance with the ACL;

• continue to implement an Apple program to improve ACL compliance which includes improved training for Apple sales staff and management staff and all Apple call centre representatives who have contact with Australian consumers;

• continue to monitor and review its ACL compliance going forward to ensure the conduct of concern to the ACCC does not occur again;

• maintain a webpage aimed at providing information and clarifying the differences between the coverage provided by the ACL and Apple’s voluntary limited manufacturer’s warranty; and

• continue to make available in its retail stores in Australia copies of the ACCC’s “Repair, Replace, Refund” brochure.

Apple is also involved in controversy abroad, having just agreed to refund at least $36 million to US customers whose children made purchases from its online App Store without parental consent.

Apple has also agreed to modify its practice - which until now had allowed children to make purchases on an iPhone or iPad up to 15 minutes after a password was entered.

The ACCC has highlighted this as an area of concern in Australia, with a recent sweep revealing that most children's "free" game apps did not disclose that in-app purchases could be made.

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