Apple and New Jersey consumer protection officials have settled a state investigation that found repeated pricing and refund policy violations in Apple stores. Here are the details.
‘The Division’s largest-ever settlement under the Merchandise Pricing Act’
In a press release signed by New Jersey Attorney General Matthew J. Platkin (via AppleInsider), the state announced that Apple has agreed to pay a $150,000 civil penalty and change its in-store pricing practices.
The settlement follows a Division of Consumer Affairs reinspection of 11 Apple Stores that identified missing price labels on device display tables and on accessories sold throughout the stores.
In addition, several stores were found to be missing conspicuously posted refund policies at required locations, including near cash registers and store entrances.
The reinspections stemmed from a 2017 consent order between Apple and the state. It required the company “to install continuously available pricing information for iPhones, iPads, MacBooks, Apple Watches, and other electronic devices displayed on tables in stores throughout the state,” according to the press release.
At the time, New Jersey regulators took issue with Apple’s reliance on in-store digital pricing systems that required customers to interact with devices to determine their price, arguing that the approach violated state consumer protection laws. Now, following the reinspection and Apple’s failure to comply with these regulations, the company was fined.
Here’s AG Platkin on today’s news:
“At a time when prices are skyrocketing, consumers deserve to know what they’re paying for products on the shelves. Once again, Apple has violated the law by failing to display the prices for products in their retail stores—keeping consumers in the dark (…) It’s bad enough when companies violate the law once. It’s even worse when they are held accountable for violating consumers’ rights and then engage in the same unlawful conduct again. There is no excuse for Apple’s repeated misconduct here, and consumers deserve better. We’ll stand up for them every time.”
The settlement, which is the largest-ever under the Merchandise Pricing Act, will require Apple to “change its business practices by, among other things”:
- not advertising, offering for sale, or selling merchandise in Apple stores unless the total selling price of the merchandise is: (a) plainly marked by a stamp, tag, label, or sign affixed to the merchandise; (b) apparent on the screen of the device itself upon limited interaction; or (c) located in close proximity to where the consumer finds the merchandise, so that consumers can independently know the price while looking at the merchandise without the need to interact with a salesperson;
- not requiring consumers to interact with an electronic device to determine the selling price of merchandise in Apple stores unless: (a) the total selling price is apparent upon limited interaction with the device; and (b) the total selling price is displayed clearly and conspicuously; and
- clearly and conspicuously posting refund policies for all merchandise in at least one of the following locations: attached to the merchandise itself; affixed to each cash register or point of sale; in a place where it is clearly visible to the buyer from the cash register; or posted at each store entrance used by the public.
Apple has yet to comment on the settlement.
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