Fri. Mar 29th, 2024

Apple has been fined $12M by Italian regulators for making misleading and unfair claims regarding iPhone water resistance. The Italian antitrust authority found that Apple was guilty of two things and one of them was more serious than the other.

The fine was imposed by L’Autorità Garante della Concorrenza e del Mercato (AGCM) which translates as the guarantee authority for competition and market. It is the competition watchdog responsible to make sure that companies treat consumers as well as competitors fairly.

It said that Apple made water resistance claims without making clear to consumers that it was true only in ideal laboratory conditions and the phones have not passed the same tests in real-life conditions.

The first concerns the marketing of a number of various iPhone models like iPhone 8, iPhone 8 Plus, iPhone XR, iPhone XS, iPhone XS Max, iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max where it was claimed that each of the advertised products were water resistant to a maximum depth varying between 4 metres and 1 meter depending upon the model for around 30 minutes.

The Authority added that the messages did not clarify that the claims were true only in the presence of specific conditions, like during specific and controlled laboratory tests with the use of static and pure water, and not in normal use of the devices by the consumers.

Secondly, Apple made iPhone water resistance claims in its marketing but later refused warranty service on phones which suffered water damage.

Italy Fines Apple 10 Million Euros For Misleading Water Resistance Claims -
Image Source : NewsLiveNation

The disclaimer stating that “The guarantee does not cover damage caused by liquids”, given the emphatic advertising boast of water resistance, was likely considered to deceive consumers by not clarifying what type of guarantee it referred to, nor it was deemed capable of adequately contextualizing the conditions and limitations of the claims of water resistance.

The Antitrust considered it inappropriate to take Apple’s refusal into account, in the post-sales phase to honor warranties when the iPhone models were damaged by the water or other liquids and depriving consumers of the rights they should expect from the guarantee or in the Consumer Code.

Apple fits iPhone with internal indicators that shows when there has been water ingress into the device. It is the policy of Apple to deny warranty repair or replacement when the indicator is activated. This means customers are told one thing when they purchase the phone, but something else when they need after-sales service.

Apple has been fined ten million Euros and additionally ordered to publish a notice on its Italian website by a ‘Consumer protection information’ link.

This opens the way for similar rulings in other European Union countries and could conceivably lead to class action lawsuits in US and elsewhere, because the issue has been highlighted.

SetteBIT notes that ruling references three Apple ads. Apple tends to delete other ads from its YouTube channel, but the site archives its own copies and providing proof of the claims originally made.