Apple Adjusts Warranty Coverage in Australia to Comply With Consumer Protections Law

[MacRumors]

Australian law requires that sellers of products offer warranties for "a reasonable period from date of delivery until the failure becomes apparent". This has been interpreted as two-years for computers. Apple's standard warranty on all products runs for one-year, while AppleCare extends coverage to three years on Macs.

The Sydney Morning Herald writes of the warranty requirements, including that Apple Retail Store employees and authorized resellers have been notified of a change in how Apple handles warranty claims in the country.

On Friday, Apple's Australian retail store staff and authorised Apple resellers were notified about a change to Apple's internal policy on how it handled standard warranty claims.

Until now, many Apple consumers have reported on forums that store staff have only ever discussed with them a standard 12-month manufacturer warranty when selling, fixing or replacing Apple goods.

Apple has now changed this from 12 months to 24, which appears to bring it in line with Australian Consumer Law.

The consumer protection law, which Apple details in a page on its website, requires purchasers to contact the seller of a product for a warranty claim rather than the manufacturer. This means that if a Mac is purchased from a non-Apple retailer, that retailer is responsible for satisfying the requirements of the Australian law. It also means that Apple is responsible for warranty claims on third-party products purchased at Apple Retail Stores.

Apple notes that consumers can receive warranty coverage under the Australian consumer law, Apple's standard one-year warranty, or AppleCare, whichever is applicable.

The company had previously gotten in trouble over its AppleCare practices in Italy -- that country has a similar consumer protection law and Apple was fined more than a million dollars because it did not sufficiently notify customers about the standard warranties available to them under Italian law.

Article Link: Apple Adjusts Warranty Coverage in Australia to Comply With Consumer Protections Law

[needfx]

I am glad and anticipating more countries to fall in line

[segers909]

Belgium needs this too!

[edk99]

..and in a separate new release Apple will raise prices on products in Australia.

[pancakedrawer]

Hopefully Apple will be up front about this change. I can see a few companies not wanting to draw attention to this, they make a fortune by selling people extended warranties they don't need.

[johnnnw]

Probably wouldn't of gotten Apple Care if this was the case in my country, 2 years sounds pretty great as an included warranty, not worth getting one year for another 250 dollars.

Too bad the actual computer in Australia is probably way more.

[Nermal]

Originally Posted by needfx

I am glad and anticipating more countries to fall in line

A similar page exists on the NZ site (NZ's Consumer Guarantees Act is similar) but I don't know whether that page is new or not.

[Stella]

deleted.

[Gasu E.]

Originally Posted by edk99

..and in a separate new release Apple will raise prices on products in Australia.

Originally Posted by johnnnw

Too bad the actual computer in Australia is probably way more.

Warranties have value; if a longer warranty is included, then the price should be higher than in places where the warranty is shorter.

[kilcher]

Originally Posted by Gasu E.

Warranties have value; if a longer warranty is included, then the price should be higher than in places where the warranty is shorter.

I don't think anyone is arguing it shouldn't cost more. But... Some people, myself included, would rather pay less for a 1 year warranty and have the option of paying more for a 2 year warranty than simply being forced to pay more.

[sir1963nz]

Originally Posted by Nermal

A similar page exists on the NZ site (NZ's Consumer Guarantees Act is similar) but I don't know whether that page is new or not.

Yep, my sons MacBook had a new motherboard fitted for FREE after 2 1/2 years under the Consumer Guarantees Act. A "Reasonable" time for electronics is 3-5 years, and because Apple puts its pricing and its product quality in the premium end of the scale its probably closer to the 5 year mark. TVs, Refrigerators and the like can be up to 10 years !

I NEVER buy extended warranties, the cost money and actually reduced your rights.

[Doc750]

Good, now charge them more for the product to cover the warranty related costs.

[declandio]

Originally Posted by sir1963nz

I NEVER buy extended warranties, the cost money and actually reduced your rights.

I see your point, but they don't reduce your rights (I'm not sticking up for extended warranties)- usually there is some small print along the lines of 'this does not affect your statutory rights' (ie, the warranty can say what it likes but the law will always override it)....

[Geminist]

So if someone bought a Mac in Australia. A year later he flew to UK to work for 6 months and his Mac broke, would the person be covered by 2 years warranty or by 1 year warranty (assuming no Apple Care)?

[PracticalMac]

Keep eye on China

[edk99]

Originally Posted by Gasu E.

Warranties have value; if a longer warranty is included, then the price should be higher than in places where the warranty is shorter.

I 100% agree. Prices will be adjust accordingly.

[declandio]

Originally Posted by Doc750

Good, now charge them more for the product to cover the warranty related costs.

Warranty issues should be few and far between on 'premium' products such as the ones sold by Apples so no, they shouldn't bump the price up to compensate. That's just being greedy.

[iGrip]

What is the world coming to when a small government can tell a big corporation what to do?


/s

[thekev]

Originally Posted by edk99

..and in a separate new release Apple will raise prices on products in Australia.

That is possible. Countries have their own laws on these things, and all companies should be required to adhere to them. Pricing is often compared back to the US and referred to as cheap here. The most common mistake is that they often fail to realize that VAT, GST, etc. is not included on the US product pricing due to it being applied at a state level and added at checkout. Pricing is never 100% identical, so it's important to compare all factors involved. In the case of Apple with products over 1000 $, £, or similar denominations, they round off to the nearest XX99 amount, so sometimes there is some amount of leverage when you don't know which way it's rounded. Considering that this is built into every product, so the costs are distributed equally, I don't think they will apply a huge price increase. Some of the more expensive items might jump to the next xx99 point, assuming they don't feel this will cost them more in sales.

Originally Posted by Doc750

Good, now charge them more for the product to cover the warranty related costs.

It becomes ridiculous when you state it as a spiteful dictation. It's really comes off as a childish "so there".

Originally Posted by Geminist

So if someone bought a Mac in Australia. A year later he flew to UK to work for 6 months and his Mac broke, would the person be covered by 2 years warranty or by 1 year warranty (assuming no Apple Care)?

No one on this board can really answer that for you with 100% confidence, but I wouldn't plan on trying to apply Australian law outside their borders. As for international warranty policy in general, I believe some people have dealt with it on here. The actual terms of international coverage are probably somewhere on Apple's site.

[rcread]

It's too bad Australia doesn't let the free market work without interference. If people value a longer warranty, they will buy computers that have them and those that don't will lose out in the marketplace. It's Econ 101.

[iGrip]

Originally Posted by edk99

I 100% agree. Prices will be adjust accordingly.

If Apple could make higher profits by charging higher prices, they would be doing so already.

If they raise prices, they will reduce volume. At some point, price and volume come into balance to produce the highest possible total profits.

Apple is ALREADY at that point. If Apple could have charged more, they would already have done so. But they know that they are getting the highest possible price already, and that any increase will decrease profits.

So there is little reason to believe that Apple has any real ability to raise their prices. No company that uses rational pricing strategies charges any less than what the market will bear. Apple does NOT leave money on the table currently, and there is no reason to believe that they could raise prices without lowering profits.

Again - if it were possible for Apple to raise prices, than they would have done so already.

[EvilEvil]

Apple should make Applecare 2 years globally.

[iGrip]

Originally Posted by rcread

It's too bad Australia doesn't let the free market work without interference. If people value a longer warranty, they will buy computers that have them and those that don't will lose out in the marketplace. It's Econ 101.

How far are you willing to go with that? Should businesses be able to sell foods contaminated with dangerous pesticides for cheap? Car tires that might blow out under normal use? With no warranty of merchantability or suitability for any particular purpose?

Caveat Emptor ruled for centuries, but pretty much every country in the world has pared back on that, for many good reasons.

[lulla01]

i wish the USA had two year warranty.-

[biggerboy]

They wonder why things are more expensive in Australia?

Duh.

http://www.techspot.com/news/51605-a...sies-more.html