Apple agrees to $95M settlement in AppleCare class action

Posted:
in General Discussion edited October 2021
Apple has agreed to pay out $95 million to settle a class action lawsuit that accuses the company of replacing products covered by AppleCare and AppleCare+ with refurbished devices, an alleged breach of advertised policies.

AppleCare+


Dating back to a complaint filed in 2016, the class action lawsuit takes aim at Apple's practice of replacing products covered by its first-party warranties with refurbished equipment. The strategy is claimed to run afoul of false advertising and unfair competition laws.

Apple's documentation notes AppleCare and AppleCare+ services promise to repair an iPhone or iPad that exhibits a hardware defect or accidental damage, or replace it with a device that is "equivalent to new in performance and reliability." Plaintiffs in the case argue that remanufactured or refurbished hardware does not meet Apple's stated criteria.

The tech giant attempted to have the case tossed by arguing, among other points, that plaintiffs were unable to prove that reported issues were caused by used parts and that AppleCare's "equivalent to new" statute does not mean "new." Those efforts failed and a class was certified in 2019.

Lawyers for the class further claimed that Apple illegally profits by charging customers premium prices for AppleCare and AppleCare+, but fails to deliver on that contract.

The parties failed to reach a settlement during three mediations, but came to a resolution after a fourth session held on June 30, 2021, under the guidance of retired Judge Rebecca Westerfield.

Should it be granted by presiding Judge William H. Orrick, the settlement provides for a common fund of $95 million, which is anticipated to be whittled down to between $63.4 million and $68.2 million after administrative costs, incentive awards and attorneys' fees are deducted. That final amount is expected to cover 13% to 25% of estimated damages as assigned by plaintiffs' expert witnesses.

The motion for settlement was filed last Friday and spotted by MacRumors on Monday.

Members of the class are designated as individuals who purchased AppleCare or AppleCare+, either directly or through the iPhone Upgrade Program, on or after July 20, 2012, and received a remanufactured replacement device. The class period cutoff date is set at Sept. 30, 2021.

Potential class members can find more information at www.replacementdevicelawsuit.com.



Read on AppleInsider

Comments

  • Reply 1 of 15
    Does it apply to Canadians? I had a 6S plus replaced in 2017 under Apple Care. 
  • Reply 2 of 15
    avon b7avon b7 Posts: 7,693member
    If a device needs to be replaced under warranty, it should be with a new device. In the case of AppleCare, the contract should make the terms crystal clear and up front.

    Refurbished devices should be labelled as such, discounted and sold through the relevant channels.

    It's been years since I had an AppleCare policy but at the time there was a lot of 'may and might' in there and on key issues like on site repair.

    I also have issues with repairs involving known potentially faulty parts (due to design or manufacturing issues). An age old practice. 

    I wonder if the butterfly keyboard will ever pop up in court and force Apple to reveal its internal communication on the design and functionality. 
    muthuk_vanalingam
  • Reply 3 of 15
    Fred257Fred257 Posts: 237member
    I had my SE replaced in 2019 because Apple apparently destroyed it replacing the battery.  I thought that was odd.  The phone they replaced it with, the camera didn’t take anywhere near as good of photos and I believe this is why.  
  • Reply 4 of 15
    DAalsethDAalseth Posts: 2,783member
    When I got my iPhone SE, The first one, the battery was bad. It began to swell within about a week. I took it in and a few days later received a replacement SE. In all likelihood it was a refurb unit, meaning that they had gone through it front to back to make sure it was in top condition. So I got a refurb unit, and you know what, I DIDN’T GIVE A DAMN THAT IT WASN’T BRAND NEW. 
    jony0
  • Reply 5 of 15
    I have assumed that with any device or appliance that needed to be replaced rather than repaired under warranty, I could receive a refurbished unit. As long as it looked new, and worked, I was happy. I remember returning a couple of 64GB Apple TVs years ago, to exchange for 32GB ones. One had been opened but I never took the ATV out while the other was in with intact shrink wrap. The Apple person opened both - that was policy - to return to Apple. I am sure they both were sold then as 'refurbished', so that is why refurbished always are like new.
    GeorgeBMacrandominternetperson
  • Reply 6 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    avon b7 said:
    If a device needs to be replaced under warranty, it should be with a new device....
    Why?  That makes no sense.

    I just had my nearly two year old Apple Watch Series 4 replaced under AppleCare+ because the crown stopped working for EKGs.
    Should I use a product for two years and STILL expect a brand new one when one feature stops working?  Why?  Where is the logic in that?

    But, it's now even more true as AppleCare can be extended indefinitely out to the life of the product (usually about 7 years for most major products).  If my friend's 5 year old iPhone 7 stops working, should Apple replace it with a new one?  That's just ridiculous!

    For myself, I have had a number of Apple Products replaced under Apple Care -- from iPhones to AIrPods to the AppleWatch.  Not one time did I find anything wrong with the replacement.  Nothing.  Not a scratch.  Nothing.  Was it new or refurbished?  There was simply no way to tell -- and why would I care if it was, as Apple advertised equivalent to new? 
    Bosajony0
  • Reply 7 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Fred257 said:
    I had my SE replaced in 2019 because Apple apparently destroyed it replacing the battery.  I thought that was odd.  The phone they replaced it with, the camera didn’t take anywhere near as good of photos and I believe this is why.  

    Why did you not return it to Apple?  Or, at least ask them about it.
    jony0
  • Reply 8 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Bosa said:
    The refurbished units are usually much better than most of the worn-out crap that is taken in for repair . Most of these idiots basically want to have Apple replace their iPhone 6 with a IPhone 13 or something.

    now instead of a near new refurbished phone with new screen and case, Apple will replace broken part inside and give you back your shitting case and screen

    how is that good?

    idiotic lawsuit 

    That is exactly how I went from an Apple Watch Series 0 to a Series 1.   But even then it was probably refurbished.   But, that it didn't matter because it looked and worked fine.   In fact, it still works fine (but no longer looks new).
    jony0
  • Reply 9 of 15
    Anyone who believe that the phrase "equivalent to new in performance and reliability" means "new" is either an idiot or lying.

    For one thing, there is no promise that the replacement will be equivalent to new in "appearance."  A reasonable person would read the AppleCare contract to say that they might get a replacement with minor scratches or blemishes.

    If you went to a car dealer and asked about a car and they said "it's 
    equivalent to new in performance and reliability" you would be 100% certain that it's not a brand-new car.
    GeorgeBMacBosajony0
  • Reply 10 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Anyone who believe that the phrase "equivalent to new in performance and reliability" means "new" is either an idiot or lying.

    For one thing, there is no promise that the replacement will be equivalent to new in "appearance."  A reasonable person would read the AppleCare contract to say that they might get a replacement with minor scratches or blemishes.

    If you went to a car dealer and asked about a car and they said "it's 
    equivalent to new in performance and reliability" you would be 100% certain that it's not a brand-new car.

    I agree.
    But, I have had several items replaced and every single one was "Equivalent to new" both in functionality and appearance -- which has always been immaculate.

    Even EBay has explicit rules on what "New - Other" means and, except for not including the peripheral items (charging cords, etc.) Apple's criteria seems to be at least as strict.

    I suspect that the vast majority of "refurbished items" are not used items with a new battery but items that got returned within the 2 week window -- supplemented with brand new items when those were not available.   In fact, Apple doesn't have any used items:  those that they take in on trade are funneled off to other companies.
    jony0
  • Reply 11 of 15
    avon b7avon b7 Posts: 7,693member
    avon b7 said:
    If a device needs to be replaced under warranty, it should be with a new device....
    Why?  That makes no sense.

    I just had my nearly two year old Apple Watch Series 4 replaced under AppleCare+ because the crown stopped working for EKGs.
    Should I use a product for two years and STILL expect a brand new one when one feature stops working?  Why?  Where is the logic in that?

    But, it's now even more true as AppleCare can be extended indefinitely out to the life of the product (usually about 7 years for most major products).  If my friend's 5 year old iPhone 7 stops working, should Apple replace it with a new one?  That's just ridiculous!

    For myself, I have had a number of Apple Products replaced under Apple Care -- from iPhones to AIrPods to the AppleWatch.  Not one time did I find anything wrong with the replacement.  Nothing.  Not a scratch.  Nothing.  Was it new or refurbished?  There was simply no way to tell -- and why would I care if it was, as Apple advertised equivalent to new? 
    There are various reasons at play in my way of seeing things. 

    The first is the notion of needing to be 'replaced' as opposed to 'repaired'. 

    If a defect appears under warranty (of any kind) then that defect is assumed to be present at the date of manufacture but simply manifesting itself later on. 

    If you were sold a device under warranty that needs a replacement, then the time to failure is irrevelant. You deserved a fully functioning device that would stand up to the passing of time under its guaranteed use from the get go (independently of how that warranty was obtained). 

    If products are well designed and reliable there is no issue for the manufacturer. Remember, the costs are rolled into the original price and the price of the additional warranty coverage.

    The manufacturer will not lose out and the customer will have no doubts about what they will get in return. 

    Of course, the device could also fail four months into the warranty just as easily. It's going to swing both ways. 

    Another point is that it could lead to devices that are more repairable by design and can therefore be repaired, negating the need for replacement in the first place. 

    The EU is already working on legislation to improve the situation surrounding repairability in the design process. 
    muthuk_vanalingam
  • Reply 12 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    avon b7 said:
    avon b7 said:
    If a device needs to be replaced under warranty, it should be with a new device....
    Why?  That makes no sense.

    I just had my nearly two year old Apple Watch Series 4 replaced under AppleCare+ because the crown stopped working for EKGs.
    Should I use a product for two years and STILL expect a brand new one when one feature stops working?  Why?  Where is the logic in that?

    But, it's now even more true as AppleCare can be extended indefinitely out to the life of the product (usually about 7 years for most major products).  If my friend's 5 year old iPhone 7 stops working, should Apple replace it with a new one?  That's just ridiculous!

    For myself, I have had a number of Apple Products replaced under Apple Care -- from iPhones to AIrPods to the AppleWatch.  Not one time did I find anything wrong with the replacement.  Nothing.  Not a scratch.  Nothing.  Was it new or refurbished?  There was simply no way to tell -- and why would I care if it was, as Apple advertised equivalent to new? 
    There are various reasons at play in my way of seeing things. 

    The first is the notion of needing to be 'replaced' as opposed to 'repaired'. 

    If a defect appears under warranty (of any kind) then that defect is assumed to be present at the date of manufacture but simply manifesting itself later on. 

    If you were sold a device under warranty that needs a replacement, then the time to failure is irrevelant. You deserved a fully functioning device that would stand up to the passing of time under its guaranteed use from the get go (independently of how that warranty was obtained). 

    If products are well designed and reliable there is no issue for the manufacturer. Remember, the costs are rolled into the original price and the price of the additional warranty coverage.

    The manufacturer will not lose out and the customer will have no doubts about what they will get in return. 

    Of course, the device could also fail four months into the warranty just as easily. It's going to swing both ways. 

    Another point is that it could lead to devices that are more repairable by design and can therefore be repaired, negating the need for replacement in the first place. 

    The EU is already working on legislation to improve the situation surrounding repairability in the design process. 

    You seem to be confusing Apple's one year warranty with AppleCare+ -- they quite different.
    A warranty covers product defects.  AppleCare+ covers anything that can happen to a product -- including wear and tear and user questions.
    Likewise, you are assuming that the crown on my watch was bad from the beginning.  It wasn't.  It worked perfectly for almost 2 years before breaking -- well beyond it's regular warranty period.  That would generally be considered wear and tear rather than a defect.

    My friend's 5 year old iPhone 7 is covered under AppleCare+.  If a part wears out, Apple will replace the phone -- but that's obviously wear and tear -- not a defective product.

    Further, my grandson's father dropped his phone multiple times and cracked the glass both front and back.  Apple replaced it under his AppleCare+ plan.  But you are saying that they should have given him a new one after well over a year's use?   Ridiculous!
    jony0
  • Reply 13 of 15
    avon b7avon b7 Posts: 7,693member
    avon b7 said:
    avon b7 said:
    If a device needs to be replaced under warranty, it should be with a new device....
    Why?  That makes no sense.

    I just had my nearly two year old Apple Watch Series 4 replaced under AppleCare+ because the crown stopped working for EKGs.
    Should I use a product for two years and STILL expect a brand new one when one feature stops working?  Why?  Where is the logic in that?

    But, it's now even more true as AppleCare can be extended indefinitely out to the life of the product (usually about 7 years for most major products).  If my friend's 5 year old iPhone 7 stops working, should Apple replace it with a new one?  That's just ridiculous!

    For myself, I have had a number of Apple Products replaced under Apple Care -- from iPhones to AIrPods to the AppleWatch.  Not one time did I find anything wrong with the replacement.  Nothing.  Not a scratch.  Nothing.  Was it new or refurbished?  There was simply no way to tell -- and why would I care if it was, as Apple advertised equivalent to new? 
    There are various reasons at play in my way of seeing things. 

    The first is the notion of needing to be 'replaced' as opposed to 'repaired'. 

    If a defect appears under warranty (of any kind) then that defect is assumed to be present at the date of manufacture but simply manifesting itself later on. 

    If you were sold a device under warranty that needs a replacement, then the time to failure is irrevelant. You deserved a fully functioning device that would stand up to the passing of time under its guaranteed use from the get go (independently of how that warranty was obtained). 

    If products are well designed and reliable there is no issue for the manufacturer. Remember, the costs are rolled into the original price and the price of the additional warranty coverage.

    The manufacturer will not lose out and the customer will have no doubts about what they will get in return. 

    Of course, the device could also fail four months into the warranty just as easily. It's going to swing both ways. 

    Another point is that it could lead to devices that are more repairable by design and can therefore be repaired, negating the need for replacement in the first place. 

    The EU is already working on legislation to improve the situation surrounding repairability in the design process. 

    You seem to be confusing Apple's one year warranty with AppleCare+ -- they quite different.
    A warranty covers product defects.  AppleCare+ covers anything that can happen to a product -- including wear and tear and user questions.
    Likewise, you are assuming that the crown on my watch was bad from the beginning.  It wasn't.  It worked perfectly for almost 2 years before breaking -- well beyond it's regular warranty period.  That would generally be considered wear and tear rather than a defect.

    My friend's 5 year old iPhone 7 is covered under AppleCare+.  If a part wears out, Apple will replace the phone -- but that's obviously wear and tear -- not a defective product.

    Further, my grandson's father dropped his phone multiple times and cracked the glass both front and back.  Apple replaced it under his AppleCare+ plan.  But you are saying that they should have given him a new one after well over a year's use?   Ridiculous!
    The statutory guarantee and Apple's extra guarantee (which btw, has always come under scrutiny with EU consumer groups) may be different beasts but the ideas behind them and how they are applied are largely the same, as are the underlying problems of repairability by design. 

    As long as Apple tries to leave the door open to some users receiving a new product and others getting a refurbished device, then it will probably run into these kinds of legal issues. 

    A broken screen, a faulty or depleted battery do not necessitate a replacement. They are repairable items. 

    You cannot know if the failure on your crown was not down to a latent defect. In the EU at least, for the first six months, such defects are automatically attributed to manufacturing defects.

    Apple has been forced to change how it advertises AppleCare in many EU countries because it made it seem as if it was offering something 'extra' when some of it was already covered by the user's statutory rights. 

    Some parts will be affected by wear and tear but under no circumstances should normal wear and tear lead to a device being replaced. The reason for that would be something covered by my original post. Wear and tear is logical depending on how much use the device has had but replacement would be due to something else. 

    The solution for Apple is clear. Make devices repairable by design or provide the same treatment to everyone. Refurbished products have their (discounted) channels for good reason.

    Your product is guaranteed because of law (statutory rights) and a paid contract in the case of AppleCare, but trying to treat users with the same 'rights' differently will often lead to problems. 

    It must not be forgotten that AppleCare is a multi billion dollar profitable business that won't be affected by providing new replacement devices. 
    muthuk_vanalingam
  • Reply 14 of 15
    GeorgeBMacGeorgeBMac Posts: 11,421member
    avon b7 said:
    avon b7 said:
    avon b7 said:
    If a device needs to be replaced under warranty, it should be with a new device....
    Why?  That makes no sense.

    I just had my nearly two year old Apple Watch Series 4 replaced under AppleCare+ because the crown stopped working for EKGs.
    Should I use a product for two years and STILL expect a brand new one when one feature stops working?  Why?  Where is the logic in that?

    But, it's now even more true as AppleCare can be extended indefinitely out to the life of the product (usually about 7 years for most major products).  If my friend's 5 year old iPhone 7 stops working, should Apple replace it with a new one?  That's just ridiculous!

    For myself, I have had a number of Apple Products replaced under Apple Care -- from iPhones to AIrPods to the AppleWatch.  Not one time did I find anything wrong with the replacement.  Nothing.  Not a scratch.  Nothing.  Was it new or refurbished?  There was simply no way to tell -- and why would I care if it was, as Apple advertised equivalent to new? 
    There are various reasons at play in my way of seeing things. 

    The first is the notion of needing to be 'replaced' as opposed to 'repaired'. 

    If a defect appears under warranty (of any kind) then that defect is assumed to be present at the date of manufacture but simply manifesting itself later on. 

    If you were sold a device under warranty that needs a replacement, then the time to failure is irrevelant. You deserved a fully functioning device that would stand up to the passing of time under its guaranteed use from the get go (independently of how that warranty was obtained). 

    If products are well designed and reliable there is no issue for the manufacturer. Remember, the costs are rolled into the original price and the price of the additional warranty coverage.

    The manufacturer will not lose out and the customer will have no doubts about what they will get in return. 

    Of course, the device could also fail four months into the warranty just as easily. It's going to swing both ways. 

    Another point is that it could lead to devices that are more repairable by design and can therefore be repaired, negating the need for replacement in the first place. 

    The EU is already working on legislation to improve the situation surrounding repairability in the design process. 

    You seem to be confusing Apple's one year warranty with AppleCare+ -- they quite different.
    A warranty covers product defects.  AppleCare+ covers anything that can happen to a product -- including wear and tear and user questions.
    Likewise, you are assuming that the crown on my watch was bad from the beginning.  It wasn't.  It worked perfectly for almost 2 years before breaking -- well beyond it's regular warranty period.  That would generally be considered wear and tear rather than a defect.

    My friend's 5 year old iPhone 7 is covered under AppleCare+.  If a part wears out, Apple will replace the phone -- but that's obviously wear and tear -- not a defective product.

    Further, my grandson's father dropped his phone multiple times and cracked the glass both front and back.  Apple replaced it under his AppleCare+ plan.  But you are saying that they should have given him a new one after well over a year's use?   Ridiculous!
    The statutory guarantee and Apple's extra guarantee (which btw, has always come under scrutiny with EU consumer groups) may be different beasts but the ideas behind them and how they are applied are largely the same, as are the underlying problems of repairability by design. 

    As long as Apple tries to leave the door open to some users receiving a new product and others getting a refurbished device, then it will probably run into these kinds of legal issues. 

    A broken screen, a faulty or depleted battery do not necessitate a replacement. They are repairable items. 

    You cannot know if the failure on your crown was not down to a latent defect. In the EU at least, for the first six months, such defects are automatically attributed to manufacturing defects.

    Apple has been forced to change how it advertises AppleCare in many EU countries because it made it seem as if it was offering something 'extra' when some of it was already covered by the user's statutory rights. 

    Some parts will be affected by wear and tear but under no circumstances should normal wear and tear lead to a device being replaced. The reason for that would be something covered by my original post. Wear and tear is logical depending on how much use the device has had but replacement would be due to something else. 

    The solution for Apple is clear. Make devices repairable by design or provide the same treatment to everyone. Refurbished products have their (discounted) channels for good reason.

    Your product is guaranteed because of law (statutory rights) and a paid contract in the case of AppleCare, but trying to treat users with the same 'rights' differently will often lead to problems. 

    It must not be forgotten that AppleCare is a multi billion dollar profitable business that won't be affected by providing new replacement devices. 

    While there is some overlap between basic warranty for defective parts and AppleCare+ which covers that PLUS user questions, ongoing wear and tear, accidental damage and (optionally)  theft & loss.   Yes, there is overlap.   But that overlap is not great enough to equate the two.  They are different.

    And you are correct, a broken screen or depleted battery warrants a repair rather than a replacement (either new or refurbished).  And Apple obviously knows that -- because that is exactly what they do!

    You may be confusing screen breakage with damage to the back.  When my friend took his to the Apple store with damage to both they replaced his phone saying it was too far gone to repair..

    But you also say:  " under no circumstances should normal wear and tear lead to a device being replaced."
    Why would you say that?   That is one of the great things about AppleCare+   It basically tells the user:  "You will have a workeable device for as long as you own it and keep up your AppleCare+ contract".  

    Another example:   I took my AirPods Pro into the Apple Store because the right one was not charging consistently.  They replaced them under AppleCare+.  I figured out later what the problem was:  I wear them while running and they get sweaty.  While Apple made them sweat proof the salty sweat likely deteriorated the contact in the case which caused the intermittent problem.  But, under AppleCare+ it doesn't matter if it was a faulty product or my sweat:  They were replaced and now work beautifully (and I now dry them before putting them back into the case after a run).

    Is it a user question or confusion?
    Is it a defective part?
    Is it wear and tear?
    Is it accidental damage?
    ....  It doesn't matter!  They are ALL covered under AppleCare+  (but not under any manufacturer's warranty.)

    It seems that you think AppleCare+ plus is only an extended manufacturer's warranty.  It is.  But it is also much, much more.

    And nobody is being "treated differently".  Everybody gets the same service under Apple's warranty and everybody who subscribes to AppleCare+ gets the same service.  (Well, I suspect Tim might get a little better service if he walks into an Apple Store -- but that's a different story).

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