Apple Class Action Says Requiring Credit Cards for Free Software is Illegal

An Indiana owner of Apple devices claims the company unlawfully tricks consumers with false promises of free software upgrades.

Plaintiff Mark Albrechtsen claims that defendant Apple Inc. has been violating Indiana consumer protection laws by requiring the owners of Apple products to put a valid credit or debit card number on file before Apple will let them download free upgrades for their device applications and operating systems.

Albrechtsen claims Apple lures consumers into buying Apple devices with promises of free software upgrades. But the company fails to properly disclose that to receive those upgrades, the purchaser must submit a credit or debit card number, making more of their money available to Apple, according to this Apple class action lawsuit.

As the owner of one Apple Watch, two iPads, and four iPhones, Albrechtsen is highly dependent on Apple to provide software upgrades. All of these devices run on Apple’s proprietary iOS operating system.

Upgrades to that system, which are often necessary to ensure compatibility with new applications and to maintain device security, are available exclusively from Apple. The company makes these upgrades available only through its App Store, which requires users to submit a credit or debit card number before they can download even free apps and upgrades.

Albrechtsen himself says he has already heavily invested in iOS-based applications. Between his many Apple devices, Albrechtsen says he now owns 1,534 applications. He says that over the past couple years he has spent far more on his Apple apps than the national average of $35 per year.

Despite having made a substantial investment in Apple devices and apps, Albrechtsen claims, Apple’s credit card number policy prevents him from upgrading his software without providing Apple with his credit or debit card number.

Albrechtsen argues that by promising device owners free app and iOS upgrades, then requiring them to submit a credit card number to retrieve those upgrades, Apple is engaging in a deceptive business practice that violates applicable Indiana consumer protection laws.

This Apple class action lawsuit raises one claim under the Indiana Deceptive Consumer Sales Act. The Act provides a general prohibition that bars “suppliers” from committing any “unfair, abusive, or deceptive act, omission, or practice in connection with a consumer transaction.”

Albrechtsen proposes to represent a plaintiff Class consisting of all persons in Indiana who own an Apple Watch, iPhone, iPad, or iPod and who purchased an iOS application within the two years leading up to this Apple class action lawsuit.

He is asking the court to award the greater of statutory or actual damages, court costs, attorneys’ fees, and all other applicable penalties, plus interest. He estimates a possible damage award of more than $1 billion, based solely on the number of active iPhones within the state of Indiana.

Albrechtsen is representing himself.

The Apple Credit Card Number Class Action Lawsuit is Mark A. Albrechtsen v. Apple Inc., Case No. 1:17-cv-01664, in the U.S. District Court for the Southern District of Indiana.