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Class-Action Suit Filed Against Apple

AC writes "A class-action lawsuit has been filed against Apple. The plaintiffs allege that Apple failed to fully honor service contracts and warranties, didn't get repair and service businesses properly licensed, stole trade secrets from its own resellers, and sold used computer equipment as new."

20 of 125 comments (clear)

  1. Wait... by NewWaveNet · · Score: 2, Insightful

    Are there already legit complaints or are they just looking for people to tell on Apple?

  2. An actual question... by porcupine8 · · Score: 4, Insightful
    This isn't a troll or anything, I really don't know... It seems like one of the main complaints is that Apple stores are undercutting other resellers.

    How is this different, from, say, Mattel making small doll stores pay more for Barbies than Wal-Mart or Target, resulting in the big chains being able to sell the dolls for less than the independent doll stores are paying Mattel? I mean, neither practice seems particularly nice, but if one is legal shouldn't the other be?

    --
    Warning: Apple/Nintendo fangirl. Likes her electronics cute & cuddly. May be rabid.
    1. Re:An actual question... by Synbiosis · · Score: 2, Insightful

      I think that has to do with the fact that Apple forces retailers to sell their products at a set price. For a *long* time (up until two or three months ago), it was impossible to find an iPod for less than retail price, period.

      Now most of the 'low' prices for the iPod result from storewide rebates and coupons. But there's a reason there are never 'sales' on Apple merchandise.

    2. Re:An actual question... by Thu25245 · · Score: 2, Insightful

      This isn't what Apple does...it just sells its products at such high wholesale costs that resellers can't possibly sell below "Suggested" retail price and make a profit.

      Since Apple is in competition with resellers, setting a fixed price would constitute price fixing.

  3. Too bad . . . . by Anonymous Coward · · Score: 5, Insightful

    Too bad none of these resellers hit on a formula to grow Mac market share. They never figured out ways to attract new customers. Isn't that the business of sales?

  4. FTFA by downlo · · Score: 3, Insightful
    Apple is trying to pass off old parts as new, starting warranties from the time they ship to the reseller rather then when the customer buys it, not reimbursing the reseller for parts under warranties, and trying to direct reseller customers to their own Apple stores.

    There are two suits, one brought on behalf of customers, the other on the behalf of the resellers. Although the two cases are related since the consumers case is based around products bought from resellers.

    These are big issues, especially for all the apple zealots out there who think apple is a "kinder gentler company."

    1. Re:FTFA by ZackSchil · · Score: 3, Insightful

      They are. Kinda. Ok, well they've done some pretty sleazy things but have you SEEN what kinds of horrible things are considered common business practice in 2005? I wasn't surprised to see the suit being filed by a diehard mac reseller. I'm sure for those guys getting burned by Apple ends up being more emotional because of zealotry that tends to follow the company. I'd say bitterness filed this lawsuit more than the quest for money.

  5. Not sure which is worse... by Anonymous Coward · · Score: 3, Insightful

    To an extent Apple have created some problems like this for themselves in recent times, but this article just reads like the usual typical American nonsense:

    "If someone is more successful than me, it is their fault and I will sue them"

    In fact /. seems to be populated with a lot of articles like this giving the firm impression that Americans will do anything to exploit money with all sorts of feeble excuses. Wasn't Bush supposed to be making legislation to make frivilous class action suits harder to press. I don't like Bush, and my sympathises are generally always with the underdog and the individual rather than big business but it does some like the whole situation has become a complete joke in the US. But then I guess with class action lawsuits, they are not about individuals but about groups of so called 'victims' looking to invent spurious reasons to 'legally' steal money from someone else.

    Of course Apple isn't perfect like I say, but I have a hard time believing in this basis of this issue.

    1. Re:Not sure which is worse... by Anonymous Coward · · Score: 1, Insightful

      You should spend some time in America or read NRO or something. Your ideas aren't bad or completely wrong but they could be tempered with more exposure to all Americans -- not just the Americans from slashdot or popular American media.

    2. Re:Not sure which is worse... by Scudsucker · · Score: 2, Insightful

      Wasn't Bush supposed to be making legislation to make frivilous class action suits harder to press.

      That's the problem with any attepts at "tort reform": it is simply impossible to block frivilous lawsuits, which are usually a red herring in the first place, without also blocking legitimate ones as well. The legislation in question has forced some cases to be brought to federal court rather than state court. What that really means is that cases will take longer to process, since federal courts are usually backlogged more than state courts. This doesn't block "frivilous" lawsuits, it just means that ALL class action lawsuits will take much longer to process, and therefore be a lot more expensive.

  6. Re:Munney Gubbing by NanoGator · · Score: 1, Insightful

    "In other words some lawyer's trophy wife wants a new yacht."

    In other words, It's Apple and they can do no wrong.

    --
    "Derp de derp."
  7. Re:Munney Gubbing by dmarcoot · · Score: 4, Insightful

    so, because you dont like idea of lawyers making a living we should give companies cart blanch do whatever they will to their customers and partners with no penalty?

    since when is every class action suit a BAD thing?
    if people like you had your way, and with this President, you will, we would be living in asbestos houses.

  8. Re:This is for customers? by Colol · · Score: 4, Insightful

    I think the real question is whether the companies like Small Dog and MacMall are really feeling a hit in their business. AFAIK, they're not part of these lawsuits.

    Indeed. The fact that they're not involved may well be the answer in and of itself.

    Even when you consider the plaintiffs (claimaints? whatever) alone, it's rather telling what's probably going on: MACAdam is almost universally known for how much they sucked, so it's no big surprise Apple "ran them out of business."

    I also like the bit from TFA claiming Apple Stores were selling product to consumers at 8% under retail price. I don't know what alternate planet the owner of the also-infamous Elite Computers was shopping on, but I've been shopping at my local Apple Store since it opened in 2001 and they've always charged full price (unless you count the one day a year they offer a pittance of a discount on iPods).

    Heck, I generally don't shop at the Apple Store for non-Apple goods simply because their prices aren't (and never have been) competitive. When I want something Apple makes, though, it's always a nice place to go play with it first without any pressure, and just shoot the breeze with the sales staff.

    I don't shop at my local Mac reseller because my experiences with them have not been pleasant. They're either clueless or aloof or trying to cram products down your thoat. Assuming they even have what I want in stock. Therefore the Apple Store gets my business. If the local resellers would bother competing, I could be bothered to shop there. But as many people have mentioned repeatedly through the TellOnApple fiasco, there are a ton of awful independent resellers.

    Imagine, the gall of Apple for opening their own retail stores and charging full price when a network of inept third parties were doing nothing positive for Apple's bottom line or brand.

  9. Re:Question on Tell on apple by NSash · · Score: 4, Insightful

    11. In Apple's ethics document posted on their website, Apple states, "In some cases, the law may also view our resellers as our competitors when we are actually competing for the same types of customers in the marketplace." Why is Apple competing against their independent resellers?

    This question is idiotic. By definition, a store is competing with all other stores that try to sell the same things to the same people. A legitimate question would be "Why does Apple run its own retail stores?" to which the obvious answer is: because they make money. Somehow, I'm having difficulty envisioning the shareholder outrage.

  10. Re:Munney Gubbing by jellomizer · · Score: 2, Insightful

    Well so far there wasn't any evidence the the article about any wrong doing just convictions. It sounds more like the Guy who started the Class Action was POed at Apple for loosing his business, to the Apple store. But made it a class action so he could raise the damages to Apple Yes it is possible that Apple was contending in wrongdoing or the evidence was collected of 10 years of mistakes that someone on Apple did. Getting shipping mixed up and switching a New System with a Refurb. (the person who go the new system at refurbed cost wont complain), the new employee who handled the tech support call without a clear understanding of the warrantee process. Comp[anies are run by people and people do make mistakes. If these are real problems like a policy of reselling Refurb equipment as new if say it was returned no cosmetic or functional problems but was opened from the box. But the article just seems to be the owner of a store that went out of business, because his reseller also sold direct. Almost all the PC makers did this too, If you remeber back in the early 90s or late 80s going to the store was the best way to buy a PC/Apple. But when the sales were getting good they dropped the stores and sold themselves.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  11. Oh, for Christ's sake! by Anonymous Coward · · Score: 5, Insightful

    Apple only opened their own stores in the first place because the dealers were doing a lousy job! If the dealers were adequate, would Apple spend the hundreds of millions of dollars that it took to launch a whole new retail chain?

    Some dealers did a good job and they're still in business today. Others, like MacAdam and Elite Computers, were dingy, slipshod operations with a very poor record of customer satisfaction.

  12. Re:Question on Tell on apple by sribe · · Score: 3, Insightful
    4. Are the company owned retail stores actually profitable if they paid the same price for Apple products as independent Apple resellers?

    5. Is Apple misleading shareholders as to the company owned retail stores profitability?

    I didn't even catch this the first time:

    • The suit alleges that Apple's predatory practices have driven independent resellers out of business.
    • The suit implies that the Apple stores are losing money for Apple.
    • Apple is posting huge record profits. Even if you subtract out iPod sales, Apple is posting healthy profits.


    So my question is this, where the heck do the complainants think all of Apple's profits are coming from? The online stores? Their online sales are not that big a portion of sales. Education sales? They deal with huge orders, but the margins are razor thin. I think if the Apple stores were run at a loss, this would show up somewhere.

    Now they do write off part of the cost of running the big "flag ship" stores as a company-wide marketing expense, and without that the few biggest stores might show losses. This is legitimate in that those stores are used heavily as PR, and subject to legitimate differences of opinion over how much of the cost should be so attributed, and could possibly be abused. But it doesn't change the fundamental question: if resellers are being driven out of business and the Apple Stores are being run at a loss, where is all that profit coming from???

  13. Re:Munney Gubbing by CptNerd · · Score: 2, Insightful
    " In other words some lawyer's trophy wife wants a new yacht."

    In other words, It's Apple and they can do no wrong.

    No, in other words, no one wins class action lawsuits except the lawyers involved.

    --
    By the taping of my glasses, something geeky this way passes
  14. Re:Munney Gubbing by bryan1945 · · Score: 2, Insightful

    Remember the Iomega class action suit? After having a drive get the "click of death", I got 4 coupons each worth about $5 for more Iomega products. The lawyers got something like 4 or 5 million. Yeah, great job.

    And what the hell does this have to do with the President?! Yeah, we all know he's pro-business, but saying he'll make you live in an abestos house? A tad much, wouldn't you say? Considering we found out abestos was bad about, oh, 20 years before he bacame President.

    --
    Vote monkeys into Congress. They are cheaper and more trustworthy.
  15. Pick your battles by Nicademous · · Score: 2, Insightful

    God knows I LOVE my Mac, but resellers complaining about Apple stealing their ideas is like a hooker crying about the color of bed sheets. When you've got Olaf the thunder stud dumping STD's across your face, you've got bigger problems to conted with.

    Apple's resellers need to stop wasting time in the court room and start selling some fruit. Apple's got less than 5% market share, and I can't hardly wave at people with PC's.