Apple reaches recent settlements, faces class actions

Apple settlements, class action lawsuits overview: 

• Who: Apple recently agreed to settlements, asked a judge to throw out a complaint and faced a pair of class action lawsuits. 
• Why: The Apple class actions and settlements claim a design flaw, unlawful charges, an anti-competitive agreement, storage capacity deception and child sexual abuse material on the company’s iCloud service. 
• Where: The Apple class action lawsuits were filed in U.S. federal courts. 

Consumers recently targeted Apple with class action lawsuits. The company also agreed to settlements. 

Apple to pay $25M fine over claims it wrongly charged AppleCard credit card users

Apple and Goldman Sachs Bank will pay a combined $89 million to end claims the companies mishandled consumer disputes, engaged in misleading marketing and imposed wrongful charges on consumers who used the AppleCard credit card. 

The companies agreed to the settlement with the U.S. Consumer Financial Protection Bureau. It includes a $25 million fine for Apple and a $45 million fine for Goldman Sachs. Nearly $20 million from the bank will be paid to consumers affected by the alleged misconduct. 

“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” CFPB Director Rohit Shopra says in a statement. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”

The settlement also prohibits Goldman Sachs from launching any new credit cards until it is able to put in place a “credible” compliance plan, according to the CFPB. 

Judge refuses to approve $20M Apple Watch settlement 

In October, a California federal judge declined to preliminarily approve a $20 million Apple settlement ending claims the company sold certain Apple Watches with a design flaw that caused their screens to crack, detach and shatter. 

The judge determined the agreement failed to offer enough evidence about its value and how it would compare to what consumers could obtain if they were able to reach deals for their claims individually. 

The proposed Apple Watch settlement called for potentially millions of consumers to receive between around $20 and $50. 

Apple, Visa, Mastercard ask judge to toss claims they made an anticompetitive agreement

In September, Apple, Visa and Mastercard asked an Illinois federal judge to throw out a class action lawsuit claiming the payment providers conspired to stop mobile-based payment systems from competing with point-of-sale payment networks. 

The companies argue the contracts referenced by the plaintiff, Mirage Wine & Spirits, do not contain any restraints to competition among them. 

Mirage argues it has to pay higher fees for point-of-sale transactions at artificially inflated prices as a result of the allegedly anticompetitive agreement between Apple, Visa and Mastercard. 

Class certification granted for group of consumers claiming Apple misled them about storage capacity

Also in September, a California federal judge granted class certification to a group of consumers who claim Apple misled them about the storage capacity of older iPhone and iPad devices. 

U.S. District Judge Edward J. Davila granted the certification to a subclass of certain consumers who purchased a 16-gigabyte device preinstalled with Apple’s iOS8 operating system in the state of California.  

However, the judge declined to certify two proposed nationwide classes of consumers, ruling the plaintiffs failed to prove that issues affecting specific individuals were common to consumers across the United States.

Apple failed to cancel AppleCare subscriptions for devices traded in, returned, class action says

In August, a consumer filed a class action lawsuit against Apple over claims the company failed to cancel AppleCare subscriptions for consumers who returned or traded in their Apple devices. 

“Apple kept charging plaintiff and members of the class she seeks to represent for AppleCare+ subscriptions tied to devices Apple knew they no longer owned,” the Apple class action says. 

Class action says Apple failed to stop child sexual abuse material uploads to iCloud

In August, a Jane Doe minor filed a class action lawsuit against Apple over claims the company overlooks child sexual abuse material uploads to its iCloud service. 

The class action lawsuit, which the minor’s guardian filed, argues Apple failed to adopt industry standards that would detect the uploading of child sexual abuse material. 

“Apple’s privacy policy states that it would collect users’ private information to prevent things like (child sexual abuse material), but it fails to do so in practice – a failure that it already knew of,” the Apple class action says. 

The minor argues Apple ultimately engages in so-called “privacy washing” by touting to its customers that it will protect their privacy while at the same time allegedly neglecting to put its stated privacy protection ideas in place. 

Have you been injured by Apple or qualify to join a recent class action settlement? Let us know in the comments.

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