Apple Hit With Class Action Lawsuit Over iPhone Upgrade Program Woes

[TrumpsWithUs]

Yes and no. If you signed up purely to get your upgrade after 12 payments, but in fact you end up paying 13 to get the same upgrade that's not really OK is it?

What if a new phone doesn't come out for 13 months? What if Apple doesn't release a new phone in 2017? You can still get a new iPhone, it will just be the same model you currently have. This is the dumbest lawsuit ever. I mean, the phone IS NOT OUT YET! What if on launch day, Apple has enough phone of every single model to meet the demand of every single upgrade? Then what, does this law firm eat crow? Apple has plenty of new iPhones for these people to buy, they just might not be iPhone 7's. I have never heard of a lawsuit because of an inability to buy something. Anyone that buys an iPhone knows damn well that there is a shortage at launch.

 

[koa]

agreed (i upgraded on the 26th last year), but if 1,000 people were screwed out of upgrading before their 13th payment, that's $32,000+ ($40K at my monthly payment) that apple just made because of a "glitch".

who knows how many people this actually impacted, but i assume it was more. not saying i agree with the lawsuit, but that is a lot of money to be gained.

I don't think Apple is making any extra money. Your payment remains the same each month. No extra payment. You still have your 6s. You are being deprived of an upgraded 7. If you get your 7 in two months and Apple lets you upgrade that 7 in 10 months will you be unhappy?

 

[lazyntired]

People in the upgrade program couldn't reserve one but if they opened a new web page to order for full price they could. See the problem?

Agree!

I literally had my iPad going, MacBook, and iPhone going to try to reserve at 1:45am CST, couldn't upgrade at 2:01am CST. When I attempted to buy one as a new customer it was available for pick-one at the same store I just checked through the IUP? Seems crazy, but it happened.

 

[themoose]

I don't think Apple is making any extra money. Your payment remains the same each month. No extra payment. You still have your 6s. You are being deprived of an upgraded 7. If you get your 7 in two months and Apple lets you upgrade that 7 in 10 months will you be unhappy?

i'm not trading my phone in. but for those that are, apple pays the remaining balance on the loan. 1 more payment from the buyer = 1 less apple is paying to citizens bank. that's a lot of cash.

 

[MrGimper]

Only in 'merica

 

[westgorge]

Boston law firm Block & Leviton today announced it has filed a class action lawsuit against Apple on behalf of iPhone Upgrade customers who are dissatisfied with how Apple handled iPhone 7 and iPhone 7 Plus pre-orders last Friday.

When customers who participate in the iPhone Upgrade Program went to pre-order an iPhone 7 or 7 Plus, they were forced to reserve a device from a local Apple retail store rather than being able to make a traditional online purchase. Many retail stores did not have sufficient stock to meet demand, leaving some customers unable to select the model, color, or storage capacity they desired.

Many iPhone Upgrade Program members were unhappy with the ordering process and an inability to reserve a desired iPhone for launch day. Apple has responded to customer frustration and has been collecting customer information to attempt to get customers their iPhones as soon as possible. Apple's efforts have not, however, prevented today's lawsuit, which claims iPhone Upgrade Program users will face future upgrade delays due to the situation.The lawsuit asks Apple to reimburse iPhone Upgrade members who are forced to make extra payments while waiting for a new iPhone, make upgrade members eligible for a 2017 iPhone in September regardless of upgrade delays, and seeks to require Apple to make all of its iPhone inventory available to upgrade members.

Apple's iPhone Upgrade Program, arguably designed for the company's staunchest fans, allows customers to upgrade to a new iPhone each year. Customers can upgrade after as little as six months, so long as they have made 12 iPhone payments and trade in the iPhone in question when upgrading.

Article Link: Apple Hit With Class Action Lawsuit Over iPhone Upgrade Program Woes

 

[perkedel]

I wonder if they're going to continue this upgrade plan, it doesn't seem to worth the headache.
The risk of potential lawsuit is probably minuscule though compared to revenues from these people who are leasing their phones.

 

[derekamoss]

Yeah people might say they are whiners or crazy whatever. What I don't understand is how the heck Apple, KNOWING the huge interest leading up to the pre orders didn't put out some type of page stating how the upgrade program would work. This is the first time they used it so people cant just search and be like oh that's how this program runs... How were they so ignorant in not letting people know the upgrade path for the upgrade program? Unless Cook actually thought "pshhhh upgrade program people, they'll wait."

 

[koa]

Could people that couldn't order through last year's program, order an iphone for store pickup like others could, go to store with old phone, return new phone and trade in old phone?

 

[BittenAnkles]

The lawsuit seems presumptive at best. No one in IUP has yet to make a 13th payment, so you can't claim monetary damages at this time. Additionally, Apple seems to have acknowledged the issues and appears to be working to resolve them. Those two items alone seem to invalidate the legal claim.

The fix seems pretty straightforward to me. Apple fixes the pre-order to allow IUP users to make an order. Then, by virtue of placing an order, the clock starts ticking on your next upgrade. You may not get your new phone before you've made 13 or 14 monthly payments, but those count as payments 1 and 2 towards your next phone.

 

[onepremiere]

There was two different pools of supply and demand when there should have been only one pool.

That must have been an idea vote on by committee. Lol. Still doesn't warrant a lawsuit. It seems Apple is recognizing their error and attempting to fix it. I am sure those whom are unhappy will be compensated in some form. If not, wait for that $0.50 check in the mail 10 years after Apple settles. Golfers clap, well done the world is mocking us (Mer-ica).

 

[linsam]

This class action lawsuit is absolutely pathetic!

 

[macduke]

Are they really the best customers? Because they're filing a lawsuit. They seem like a burden to the company IMO. Plenty of us get the new phones whether year, but we pay full price up front.

Oh, just because a few people file a lawsuit suddenly we're collectively a burden? Right…

It takes your best customer to sign a contract and take a credit report hit to be subscribed to your iPhone upgrade program, which is guaranteed monthly income for Apple that we pay, and drive to an Apple Store (halfway across the state in my case) to pick up the goods. It's required every year that we must have a credit check. If anything Apple is treating us like crap despite the hoops we have to jump through. If they don't simplify things then next year I'm just going to forget it. This program is turning into a cluster. Why can't they design this program as well as they design their devices and software? They need to go over every step of the process, identify the pain points, and come up with solutions to make this better. Right now it's more annoying than good.

 

[malexandria]

the only people who get anything from Class Action lawsuits are the lawyers. The "victims" only end up with literally a couple of dollars (lf they are lucky)

 

[westgorge]

Tim Cook needs to go to jail over this atrocity. For all the people who will lose their lives because they didn't get their iPhone upgrades when they wanted them? Just no excuse. Someone needs to pay for this. Thank GOD someone stepped up to the plate to see that injustice gets it's time in court.

 

[TallManNY]

I ask you as well, respectfully, how are you damaged? That's the basis of a lawsuit- financial or equitable relief. So how are you in better shape if Apple delivers your phone on launch day? What will you lose by not having a phone on release day? What did you pay Apple in exchange for their promise to deliver on launch day- which was never a promise as far as I'm aware? There is no reasonable expectation or reliance remedy in this situation.

It took me a bit of time to see what the damage is. It is minor but if there are one million customers affected by it, it adds up. The damage is that you pay for a 13th month of iPhone 6S while you wait (i.e., $35 or so), when you thought you were going to pay that $35 and be using an iPhone 7. $35 to use an iPhone 7 for a month is a better deal than $35 to use a one year old 6S for a month. And if you don't get the iPhone 7 until November, then when you swap next year you have to either pay up for 12 months (while only using the iPhone 7 for 10 months) or you get pushed to November for iPhone 8 (or 7S or whatever it is called).

The lawyers can make other stupid claims about pain and frustration with getting up at 3 a.m. and futzing around for a half an hour or so. But that is small potatoes and fairly speculative damages. But unless Apple makes some monetary concessions here, the basics of the plan which is you only pay for 12 months tops before you get to swap out to the new phone kind of isn't happening for some people the way they thought the program was going to work.

 

[damant]

I think the problem was no one expected to sign up for this program and be treated second class.

There were tons of people who woke up early on pre-order day and were denied the opportunity that every other purchaser had who also woke up early on pre-order day.

+1
Most people laughing at this dont seem to read too well !
The point is that the people with iup were Not given equal opportinity to preorder their iphone !!!!!
They were shut out or the preordering process compared to everyone else .

None the less the lawsuit is a bit overboard ;-) ...

 

[TrumpsWithUs]

i'm not trading my phone in. but for those that are, apple pays the remaining balance on the loan. 1 more payment from the buyer = 1 less apple is paying to citizens bank. that's a lot of cash.

Well it's the same for all the carriers as well. If you are on Jump with TMo, it's the same issue. There is no guarantee that it will be available.

 

[malexandria]

Meanwhile, Samsung Note 7s continue to burn.

Boy, your joke is so funny and original.

 

[gixxerfool]

This is entitlement at its best.

 

[niknokseyer]

Well.. I'm part of the Apple Upgrade Program and wasn't able to reserve a phone. I'm not complaining though since I was indeed late (10 mins.) in getting in the site to reserve a phone.

Unfortunately it is really a bit on an issue since we are subscribed to Apple for the phone so it'll be good to have some privileges (at least some reserved stock, or as others have suggested to have at least something in advance to inform Apple that we would want to opt in for an exchange).

Plus unlike others we can only get our phone through Apple since we can't purchase them to other retailers (e.g. BestBuy, Target, Costco) or even to carriers (e.g. AT&T, Verizon, Sprint).

 

[6836838]

"forced" to order extra? eh?

What was the urgency to get first dibs on day one?

 

[Jsameds]

Yes and no. If you signed up purely to get your upgrade after 12 payments, but in fact you end up paying 13 to get the same upgrade that's not really OK is it?

If you've paid the 13th month then presumably you're signing up for another year and you'll get your next one after only 11 payments. So it all balances out.

 

[Gorms]

You Americans sure love suing each other over anything and everything.

 

[iamgalt]

Well, that didn't take long.