Apple charges AppleCare fees on returned, traded devices, class action claims

AppleCare charges class action:

• Who: A Florida woman sued Apple Inc.
• Why: The plaintiff alleges the company failed to cancel AppleCare subscriptions for customers who returned or traded in their devices.
• Where: The AppleCare lawsuit was filed in a Florida federal court.

A consumer hit Apple with a class action lawsuit alleging it fails to cancel AppleCare subscriptions for customers who returned or traded in their devices.

Plaintiff Cassandra Edwards filed the class action complaint against Apple Inc. Aug. 23 in a California federal court, alleging violations of state and federal consumer laws. 

Edwards alleges that Apple breached its AppleCare agreements with consumers and profited unjustly by charging AppleCare fees even after customers traded in or returned their devices.

According to the lawsuit, when customers purchase a new Apple device and sign up for a monthly AppleCare subscription, the company automatically charges fees as soon as the device is shipped. 

Edwards alleges that once a customer returns their device, they should no longer be charged for services like protection and support. 

However, Apple allegedly continues to bill customers for AppleCare tied to their old devices, while charging them for the new ones, as well.

Apple profits off charging fees for useless coverage, lawsuit claims

Apple tracks each device’s trade-in or return status using its serial number, making it possible for the company to automatically stop fees for returned or traded devices, the lawsuit states.

But Edwards alleges Apple intentionally avoids doing so because it’s more profitable to continue charging for the now-useless coverage and that the company incurs no repair, replacement or support costs on those devices once they are out of circulation.

She says Apple charged her $13.49 a month for AppleCare after purchasing an iPhone 12 Pro in October 2020. When she traded in her old phone for a new one, the company enrolled her new device in a fresh AppleCare subscription, while the charges for the old device continued from Feb. 2022 to July 2024. Edwards says she only realized the issue after seeing her bills and requested a refund, which Apple provided only partially.

Edwards seeks to represent all Apple customers who faced similar charges over the past four years. 

She is suing for violation of warranty laws and unjust enrichment and seeks certification of the class action, damages, fees, costs and a jury trial. It also seeks to halt Apple from charging AppleCare fees for devices that have been traded in or returned and demands Apple void all such contracts. 

Meanwhile, a consumer hit Apple Inc. with a class action lawsuit alleging it overlooks child sexual abuse material on its iCloud service.

What do you think of the allegations in this AppleCare class action? Let us know in the comments! 

Edwards is represented by Candice L. Fields of Candice Fields Law PC and Aaron K. Block and Max Marks of The Block Firm LLC. 

The AppleCare class action lawsuit is Cassandra Edwards v. Apple Inc. et al., Case No. 5:24-cv-05795, in the U.S. District Court for the Northern District of California.

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