Apple
An Apple logo is seen in a store in Los Angeles, March 24, 2017. REUTERS/Lucy Nicholson

Apple Inc. was accused Thursday by the Australian Competition and Consumer Commission of misleading customers by telling them that it wasn't obliged to fix their iPhones and iPads if they had previously got their devices repaired by third parties. The ACCC has taken Apple to the Australian Federal Court for breaching consumer law, particularly in cases where the users received the "Error 53" message.

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“The ACCC commenced an investigation following reports relating to ‘error 53’ – an error which disabled some consumers’ iPads or iPhones after downloading an update to Apple’s ‘iOS’ operating system. Many consumers who experienced error 53 had previously had their Apple device repaired by a third party; usually replacing a cracked screen," the consumer watchdog stated in a post on its website.

"The ACCC investigation revealed that Apple appears to have routinely refused to look at or service consumers’ defective devices if a consumer had previously had the device repaired by a third party repairer, even where that repair was unrelated to the fault,” it added.

The Error 53 malfunction emerged in 2015 and 2016, and largely affected iPhone 6 and iPhone 6 Plus users after they had got their iPhones repaired by third parties. Users received the error after which their phones stopped working. They weren’t able to even restore their phones and Apple refused to help, essentially rendering such phones useless. The ACCC has accused Apple of monopolizing iPhone repair, forcing customers to use its expensive repair service.

The case, however, is not unique to Australia. Apple was sued in the U.S. for the same error, but the judge dismissed the case and ruled that the plaintiffs had inadequate standing and could not provide sufficient evidence of data loss.

The ACCC hasn’t brought data loss into consideration. It appears to have a more nuanced view of consumer guarantees.

“Denying a consumer their consumer guarantee rights simply because they had chosen a third party repairer not only impacts those consumers but can dissuade other customers from making informed choices about their repair options including where they may be offered at lower cost than the manufacturer,” it said in the statement.

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According to News.com, ACCC is seeking penalties up to $1.1 million per breach of consumer guarantees.

Apple has had a run-in with ACCC in the past. In 2013, Apple had to give the ACCC a court-enforceable undertaking that it would improve its compliance with Australian consumer laws, which state:

  • When consumers buy products, they come with a number of guarantees, including a guarantee that they will be of acceptable quality and a guarantee that they will be reasonably fit for any disclosed or represented purpose.
  • the consumer guarantees are in addition to any manufacturer’s warranty;
  • The consumer guarantees are not limited to the period of the manufacturer’s warranty. In many cases, they will apply for longer than the manufacturer’s warranty;
  • If the product is not of acceptable quality or fit for purpose, consumers are entitled to remedies, which may include a refund, replacement or repair, at no cost to the consumer.

Apple is yet to release an official statement on the matter.