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Italy fines Apple $1.2M for 'unfair commercial practices'

Apple's retail operations were fined 900,000 euros, or $1.2 million, in Italy in response to complaints of "unfair commercial practices" related to product warranties.

The total fine came from what the Italian Antitrust Authority determined were two failures by Apple's retail stores in Italy, according to The Wall Street Journal. Apple Sales International, Apple Italia Srl and Apple Retail Italia were fined "for not providing clear information to customers on product assistance," the report said.

Specifically, Apple was fined 400,000 euros for not providing adequate information to customers about the length of product guarantees. And another 500,000 euros stemmed from Apple not giving customers enough information about its AppleCare extended warranty.

Products sold by Apple come with a standard one-year warranty and option to buy a second year through AppleCare, but local laws require companies to protect buyers with a free two-year warranty. Italian authorities determined that Apple "did not fully implement for consumers the two-year legal guarantee from sellers."

Apple expanded its retail operations into Italy in late 2006 with a store in Ponte di Nona's RomaEst shopping plaza. That store is located in a rural area about 15 kilometers from Roma.

Apple now has a total of 9 retail stores in Italy, with the remaining eight stores located in Bergamo, Oriocenter; Bologna, via Rizzoli; Caserta, Campina; Catania, Centro Sicilia; Firenze, I Gigli; Milano, Carosello; Milano, Fiordaliso; and Torino, Ge Gru.

Earlier this year, the Italian government also initiated an investigation into the location database file controversy that surrounded Apple. Italy joined the U.S., France, Germany and South Korea in probing the matter, which was quickly resolved with an iOS update.



81 Comments

gatorguy 24627 comments · 13 Years

The fine was due to Apple and it's seller's failing to follow/disclose Italian law that provided a 2-year guarantee rather than Apple's typical 1 year. In addition, reading between the lines, I believe they've also claimed Apple and it's seller's failed to disclose the paid year two warranty provided by Apple Care coverage overlapped the year 2 free product guarantee provided under Italian law.

"The decision came at the end of an inquiry that proved Apple did not fully implement for consumers the two-year legal guarantee from sellers and also that the company did not provide clear information on coverage of additional premium services"

http://www.telecompaper.com/news/app...ading-in-italy

ssquirrel 1192 comments · 21 Years

Thanks for completing the article for them. Care to update a bit AI? Just reading your article leaves head scratching b/c Apple's typical 1 year is pretty upfront. I was wondering how they were failing. Also the WSJ link gives me about 2 lines then requires a sign in, so sum things up better AI.

eyensteinno 148 comments · 17 Years

I think Italy needs Apple more than Apple needs Italy.

frenchseb 15 comments · 17 Years

Everytime Apple breaks the law somewhere we get that silly comment. Country needs Apple more than Apple needs country (replace country with anyone except US and China...)
This is so ridiculous, can you actually conceptualize in your brain that countries can have their own set of laws and that they dont have to adapt their laws depending on what Apple does in the US ?
Anyhow why would you worry about guarantee issues, I am sure you think Apple product never fail.

Quote:
Originally Posted by EyeNsteinNo

I think Italy needs Apple more than Apple needs Italy.

MacPro 19845 comments · 18 Years

Perhaps Apple should simply not offer an 'Extended Warranty' in Italy since they are in effect being forced to give an extra year for free or at least shorten it by a year. However, I'd agree the term 'Extended Warranty' should refer to a subsequent not an overlapping service based upon the common understanding of the word 'extended' be that Italy or elsewhere.