The Italian Antitrust Authority have cited that companies are required by law to disclose the warranty which comes with a new device, and that warranty must extend two years instead of the regular one year which the devices come with. AppleCare extends that warranty by another year and Italy finds "pushing" customers into buying the protection plan isn't right.
According to TechCrunch, the 400,000 euros is from "failing to inform customers of their right to two years' free support provided by Italy's Consumer Code law," while the rest of the 500,000 euros is the failure to properly explain the warranty and free support customers have a right to. Every customer is given the option of AppleCare with their purchase, both online and in physical stores, but employees don't receive a commission for selling the plan to customers.
The protection plan, which has varying prices depending on the product being insured, is made available to extend the one year warranty and expands on what a technician can help with should a device be broken. Most of the time, iPhones and iPads are bundled with AppleCare as they are the most common devices to be brought back for repairs.
Reuters reports that the company's Sales International, Italia, and Retail Italia departments are all being targeted by the fine and accusations. The group says the protection plan overlapped the required two-year free support and wasn't properly explained by employees to customers, having them overcharged for a service they simply did not need.
The electronics company has 90 days to change the information both in their physical stores and their website. And not only has Italy slapped them with anti-trust fines, they are also facing price-fixing charges with e-book publishers in Europe and a heated lawsuit with Samsung.
Should they be more clear about their protection plan with their customers, or is this all just a misunderstanding?
by
Stephanie Medeiros
Member since:
August 15, 2011 Apple Fined in Italy over AppleCare
December 27, 2011 03:10 PM UTC
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