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Apple owes $1.2 million to Italian consumers after losing an appeal today. The company is charged with misleading customers into unnecessarily buying its AppleCare service.
AppleCare is Apple’s warranty program, which extends a product’s insurance coverage to two years, in conjunction the company’s complimentary one year coverage. It not only gives customers a guarantee that their products will be repaired if damaged but also provides special customer help lines for those dealing with hardware. In some cases, the help lines do cover software issues as well. The cost for the plan varies by product type but can range from $99 to $349. The problem? European Union law already states that consumers will be given a two-year warranty on their gadgets gratis.
According to The Next Web, the Italian court denied Apple’s appeal, saying the company used an “unfair trade practice” to make consumers believe they had to purchase a warranty that is already theirs by law. As a part of the judgement, Apple will also have to change the wording on its AppleCare package to inform customers of this legislation — making the paid-for service seem unnecessary.
Apple can still re-appeal the decision, however. The court previously said that Apple would have to make its packaging changes within 90 days, but that stipulation has since been lifted.
via The Next Web