The Australian Competition and Consumer Commission is taking Apple to Federal Court over misleading consumers and breaching consumer law, particularly in "Error 53" iPhone bricking cases.
The ACCC filed a lawsuit against Apple's Australian branch, Apple Pty Limited, as well as the U.S.-based Apple Inc., accusing the company of making deceptive, misleading or false representations regarding the rights consumers have under the Australian Consumer Law.
The regulator is seeking injunctions, pecuniary penalties, declarations, corrective notices, compliance program orders, and costs.
Error 53 iPhone Bricking
The ACCC says that it started looking into the matter after "error 53" reports started piling up. This "error 53" disabled users's iPhones or iPads after downloading and installing an iOS update, essentially bricking the devices. Apple should have addressed this issue and provided assistance, yet in many cases it refused to handle the situation.
The watchdog points out that many of those who faced the "error 53" issue had previously serviced their iPhone or iPad at a third-party repair shop, in many cases repairing a damaged screen.
According to the ACCC's investigation, Apple repeatedly and routinely declined to check or repair users's defective iPhones or iPads if the devices had previously been repaired by a third party, even if the third-party work was not related to the current issue.
Apple Breaching Australian Consumer Law
The ACCC further points out that the Australian Consumer Law ensures several "consumer guarantees" and consumers have the right to benefit from certain repairs for free if the services and goods are not in compliance with the consumer guarantees.
In Apple's case, the ACCC argues that Apple told customers with defective, bricked devices that they did not qualify for free repairs if their devices had previously been serviced by a third party, "unauthorized repairer," although having an Apple device component repaired, serviced or replaced by another repairer cannot wipe the consumers's right to a fix if the product doesn't comply with the consumer guarantees.
Rod Sims, chairman of the ACCC, highlights that the Australian Consumer Law protects consumer guarantee rights independently of a manufacturer's warranty and these rights are not nullified just because consumers opt for a third-party repair.
"Denying a consumer their consumer guarantee rights simply because they had chosen a third party repairer not only impacts those consumers but can dissuade other customers from making informed choices about their repair options including where they may be offered at lower cost than the manufacturer."
Sims further points out that companies have to keep in mind that consumer rights don't apply only to the hardware devices themselves, but also to the software loaded onto them and any subsequent software updates that roll out and damage the devices. Under the Australian Consumer Law, faulty software or software updates warrant free remedy and Apple should not deny it.
Long story short, the ACCC alleges that Apple bricked hundreds of iOS devices with a software update and then refused to fix them on the grounds that consumers had previously repaired the devices at non-Apple repairer, although that had nothing to do with the bricking.
Apple has yet to comment on the matter. The lawsuit comes just a week after Apple scored a win in the country in a matter related to Apple Pay.
