Danish court rules Apple not allowed to dole out refurb iPhones for service swaps
A Denmark court has ruled that in cases of iPhones purchased new, that Apple can't give a refurbished phone in exchange for new, as there is no guarantee that the resale value is retained with the exchange.
The ruling, handed down on Friday, is a literal reading of the Danish Sale of Goods Act by the three-judge panel, which requires that customers' devices be replaced with a new unit if they can't be repaired within a mandated 24-month warranty. Apple's refurbished units, which may consist of some or all used parts repaired to Apple's standards, have now been deemed unacceptable for customers in the country as a result of the mandate by the court.
The complainant, David Lysgaard, purchased an iPhone 4 in 2011. In 2012, he was given a replacement device for his broken iPhone, which he was reportedly told was new. At some point after receipt, he discovered that the phone was refurbished, and not new stock.
Apple argued that since it was the original device manufacturer, that it could certify repair parts as effectively the same as new, and still meet the requirements of Danish law.
The judge ruled that since the refurbished unit could contain recycled or re-built parts, that it can't qualify as a new phone, and as such, did not meet the customer's expectation. Additionally, the court apparently took no notice of the fact that the phone was already used by the customer before being brought in for service, and declared that resale value may be impacted by the refurbished state of the phone.
Lysgaard was supported by the Consumer Complaints Board throughout the entire process.
Apple currently has no comment on the matter. It will likely appeal the matter to the high court.
The U.S. court case will also hinge on the definition of refurbished, and on how the court interprets "equivalent to new in performance and reliability," which was in Lysgaard's terms of service from the start of the process.
Parts that are replaced in a repair at an Apple authorized service location are required to be returned to Apple for evaluation and potential component level repair, with the goal of an eventual return to service stock.
While some parts on Apple iOS devices can't be refurbished, like the displays, damaged devices claimed by Apple during the repair process are often sent to a central depot for examination. They are repaired, or "refurbished," and either sent back into the service replacement process, or re-sold by Apple or an allied vendor directly to consumers as a refurbished product.
The ruling, handed down on Friday, is a literal reading of the Danish Sale of Goods Act by the three-judge panel, which requires that customers' devices be replaced with a new unit if they can't be repaired within a mandated 24-month warranty. Apple's refurbished units, which may consist of some or all used parts repaired to Apple's standards, have now been deemed unacceptable for customers in the country as a result of the mandate by the court.
The complainant, David Lysgaard, purchased an iPhone 4 in 2011. In 2012, he was given a replacement device for his broken iPhone, which he was reportedly told was new. At some point after receipt, he discovered that the phone was refurbished, and not new stock.
Apple argued that since it was the original device manufacturer, that it could certify repair parts as effectively the same as new, and still meet the requirements of Danish law.
The judge ruled that since the refurbished unit could contain recycled or re-built parts, that it can't qualify as a new phone, and as such, did not meet the customer's expectation. Additionally, the court apparently took no notice of the fact that the phone was already used by the customer before being brought in for service, and declared that resale value may be impacted by the refurbished state of the phone.
Lysgaard was supported by the Consumer Complaints Board throughout the entire process.
Apple currently has no comment on the matter. It will likely appeal the matter to the high court.
Apple faces the same battle in the U.S.
In July, Apple was hit with a class action suit filing in California, with the same complaint as Lysgaard -- that refurbished devices are not the same as new, and shouldn't be used as service exchanges. Lawyers for the claimants declare in the suit that refurbished means "a secondhand unit that has been modified to appear to be new" and therefore, cannot be equivalent in durability or functionality to a new unit.The U.S. court case will also hinge on the definition of refurbished, and on how the court interprets "equivalent to new in performance and reliability," which was in Lysgaard's terms of service from the start of the process.
Parts that are replaced in a repair at an Apple authorized service location are required to be returned to Apple for evaluation and potential component level repair, with the goal of an eventual return to service stock.
While some parts on Apple iOS devices can't be refurbished, like the displays, damaged devices claimed by Apple during the repair process are often sent to a central depot for examination. They are repaired, or "refurbished," and either sent back into the service replacement process, or re-sold by Apple or an allied vendor directly to consumers as a refurbished product.
Comments
This should be standard, everywhere, for all "replacement as warranty service" situations. If you start with a new product that has a defect, you should end up with a new product without defect as warranty protection against defect.
For mobile devices and laptops/desktops.
No, I don't think it should be mandated for repair instigated by damage. Give the customer an option between actual repair or replacement with refurb. Oh wait, Apple doesn't have the will to do component level repair even though we know it's possible...
The customer is btw. named... David
Maybe this is was done in retaliation since Apple won't open a store in Denmark and the Danes are among the last in Europe to get new Apple products.
One approach is that Apple could issue the owner a beat up old iphone 4S loaner while they repaired the iphone with the problem. Just like a car dealership would do.
Bingo. People just don't understand that complaining about something can result in making things worse for everyone. When faced with giving everyone more or taking it away, many companies will simply go the route of taking things away (in this case, over the counter replacements).
When you take your phone in to the Apple store now, they don't have to give you a refurbished phone. They can simply repair it. As a customer service add on, Apple has generally done this because 99% of the people realize this is better than simply getting a phone repaired under warranty. If, however, Apple can no longer legally give the refurbished phone in Denmark, then I don't see what choice Apple will have because there's no way they are going to give everyone a new phone every time it needs a repair. It's not economically feasible and would lead to enormous fraud as many people would look to get a brand new phone at the end of their warranty period. I'm sure the rest of the Danes don't want to have to pay the extra costs to cover that when they buy an Apple product or buy Apple Care.
I've purchased a few Apple refurbs from Apple.com throughout the years, and all of them were basically flawless, like new.
If that is not good enough for the danes, or any other euroheads, then Apple should just repair their iPhone, and give it back exactly like it came in, scratches and all, and with the same damn battery. Then nobody will have anything to complain about.
Pretty sure I am gonna get a Mac Pro 2, my question is this: should I get a new one or wait for a refurb? ;-)
When Apple releases a brand new product, from what I've seen, it takes a while before you're going to see Apple offering any refurb units for sale on their site.
So maybe if you have no problem waiting 6 months perhaps, and you have no problem with an Apple refurb, and you have no problem with saving some money, then maybe you could wait.
If your car is recalled the car dealer is obligated to fix it. (but if he can't then you get your money back - I think that is fair, don't you?)
I obviously don't use it much anymore today, but it still works flawlessly and perfectly, and I wouldn't be surprised if it still works in 15 years from now. Maybe I'll drop dead before the machine will, who knows.