Apple Hit With Class Action Lawsuit Over iPhone Upgrade Program Woes

[MartialEagle]

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

In order to satisfy the demand of JUST those in the upgrade Apple would need to stock every color of the 7 and plus in every configuration -memory and carrier - per customer in a geographical area. That's not realistic. Sure a different system needs to be looked out to preorder another route but to sue is stupid. Geez.

 

[Analog Kid]

To all of the people complaining about getting the lawyers involved when this is such a "first world problem", can I point out how rarely lawyers get involved in third world problems?

If the lawyers are involved it is, almost by definition, a first world problem.

 

[colbertnation]

There are still dozens of iPhone 7 32GBs available at my local apple stores for launch day pickup. There is your upgrade. Nothing mentions it has to be the device you particularly want.

You must be a lawyer.

 

[kgtenacious]

DISMISSED

Not only dismissed, but everyone who was stupid enough to join in the class will be responsible for court costs.

 

[colbertnation]

Not only dismissed, but everyone who was stupid enough to join in the class will be responsible for court costs.

Definitely think this case is justified, as do a lot of lawyers and customers. We'll see how this drags out in court, or more likely, when a settlement is reached. Don't see this being dismissed at all.

 

[deany]

Pathetic - ask them to do a monthly regular payment to "Water Aid".
http://www.wateraid.org/uk

 

[EricNau]

I don't think it is being explained well.
I'm on the upgrade program from Apple.
The people on the upgrade program appear to have been DE-PRIORITIZED.
We were told to come back on the 17th.
My wife was up with me (new order, not an upgrade) right when preorders opened and had no problem getting a new phone at the same time as me.
We were wondering what was going on.
I'm eligible for an upgrade.
I have no problem if I couldn't get one because I didn't make it in time, but that was not the case.

Well said. And in fact, this de-prioritization is causing IUP customers to pay more for their phones than advertised. (Due to additional monthly payments.)

I have no problem waiting for an iPhone 7. But I don't want to pay more than 12 monthly payments when I was told I would be eligible to upgrade after 12 payments. And when I was attempting to upgrade on Sept 9th the phones were available, just not for me.

 

[Alexamo]

Here is my fresh experience with the Apple Support...

like a lot of people I couldn't get the phone I wanted at midnight and I spent more than 2h between morning and afternoon to resolve my issue with Apple and get a phone now OR later but with the insurance that I would not have to pay an extra next year to get my phone in time this time.

This early morning, I got a person who told me that I would have to pay 122.25 to pay off my balance which I agreed to pay (I started the program in November).
She tried to locate a phone in the area and asked me what would be my second choice and other infos before transferring me to a higher level where they would try to accommodate my requests. And the conversation got cut off..

When I called back in the early afternoon, I had to explain everything again but the answer was different..

First, the person told me that there would be a special website where I could go Friday to order my phone. I told her I didn't know what it was but that it was not satisfying anyway and would not resolve the problem.

Then she tried to get me to the next level of Support like the other person did in the morning.
Except this time she told me right away that my request was declined because my balance needed to be paid off thru Citizen One.She offered to give me their phone number. That's what they did to accomodate me.

They wanted me to call the bank myself to pay my balance and then call back the support again (more hours on the phone) to just get to the next level and.. what ?! Start looking for a phone?!

I can barely believe I was on the phone with Apple Support. It was day and night between morning and afternoon.

I picked the Apple Upgrade Program last year to be able to get the new iphone every year without hassle

Instead, I couldn't preorder the phone, they refused to help me, and even asked me to do THEIR job.
And after all of that, if I still update my phone whenever and wherever an iphone 7 Plus 128Go Black will be available, Next year, I'll have to pay a premium to get the 2017 iphone!

So I believe that class Action is justified because I believe Apple didn't respected their engagements or at least falsely advertised about the program.
If there was no class actions, they would not give a damn about it.

 

[DEMinSoCAL]

Well said. And in fact, this de-prioritization is causing IUP customers to pay more for their phones than advertised. (Due to additional monthly payments.)

I have no problem waiting for an iPhone 7. But I don't want to pay more than 12 monthly payments when I was told I would be eligible to upgrade after 12 payments. And when I was attempting to upgrade on Sept 9th the phones were available, just not for me.

I agree. I don't understand why so many see IUP customers as "cry babies". It's not that the group was asking for priority, instead they were basically DENIED. If I understand it correctly, an IUP customer, who is the VERY FIRST PERSON on Sept 9th to order an iPhone, would have been denied and told they have to wait a week and get whatever scraps are leftover (Rose Gold anything, it seems).

That definitely is not fair and I'm not sure why Apple cannot process that group as they should.

 

[lsutigerfan1976]

What happens next year when Apple increases the price of their phones? Do you sue cause they charge you more than what you currently pay under the Apple upgrade pla to upgrade to a new phone?

 

[akadafni]

I get that Apple should've prioritized them but they didn't and it sucks for them. However, nowhere did Apple promise them an upgrade on launch day so I don't see how they have a legal leg to stand on. Just ambulance chasing lawyers and whiny customers...is there really a NEED to have the phone day one?

Here's recommendation. Next year during launch, Apple should send a link to all IUP customers that allows them to pre-order 1 day prior to regular pre-order. Link expires at 12:01 on regular launch day. Kinda like priority concert ticket orders. After the link expires it's survival of the fittest. Then Apple will be sued by the remaining customers who couldn't order on pre-pre order day. Ridiculous.

 

[Mlrollin91]

You must be a lawyer.

In law school. But if you read all my previous posts I am totally against this lawsuit. Most ridiculous thing I've heard in a while.

 

[mhornback2]

The people who bought iPhone's are just like us. Get in line and stop whining!!!

You've probably been told this already. But the issue isn't about being in front of the line. It's about being in the line at all! While non IUP users could reserve phones online, IUP users could not. They could only reserve from the scarce phone supplies that are at a local store.

That said, this is a silly lawsuit. Apple is trying hard to make things right.
[doublepost=1473733339][/doublepost]

Here's recommendation. Next year during launch, Apple should send a link to all IUP customers that allows them to pre-order 1 day prior to regular pre-order. Link expires at 12:01 on regular launch day. Kinda like priority concert ticket orders. After the link expires it's survival of the fittest. Then Apple will be sued by the remaining customers who couldn't order on pre-pre order day. Ridiculous.

First come, first serve folks. Just because you're already in the upgrade program doesn't give you premium access to a new iPhone every time.

What a massive joke.

[doublepost=1473733805][/doublepost]

Not necessarily. Anyone have a copy of the upgrade program agreement? I'm going to bet that it's pretty clear that Day 1 upgrades (or Day 2 or 3 or...) are not guaranteed. The only valid argument is the contractual one.
[doublepost=1473725716][/doublepost]

Really? If I were the one affected I would realize that my life does not change one frikking iota if I get the phone a few days, weeks, or even months after it comes out. The latter would be unfair, but the fact is that this is a bloody phone. Just a phone, not substantially different from the phone they already have. If a new phone changes their lives so profoundly then they have problems far greater than the upgrade program.

 

[farmboy]

If two or more parties make a contract and either party does not fulfill their end, then the offending party is in breach of contract and can be held liable. Apple is liable if they don't deliver what they had people paying for. This isn't "whining" this is basic property law. You'd think a company of it's size, money hoard, and ego would've seen his coming.

No, it's basic contract law. Does a contract exist, first off? You have to specify what constitutes a breach. Is being a week late a breach? A day late? How are you damaged? To what extent? What makes for a resolution of the breach, if one exists? The devil is in the details, and I'd be willing to bet that Apple didn't specify exactly what day they would take, process, or deliver your order.

 

[Squidish]

What happens next year when Apple increases the price of their phones? Do you sue cause they charge you more than what you currently pay under the Apple upgrade pla to upgrade to a new phone?

When you upgrade, you renew your 24 month loan based on the price of the new phone....This was explained when joining the program.... Not an issue at all...

 

[Digital Skunk]

How about wait?

 

[theheadguy]

First come, first serve folks. Just because you're already in the upgrade program doesn't give you premium access to a new iPhone every time. What a massive joke.

While your comment may be popular amongst the apologists, do you realize you are absolutely incorrect? Those already in the upgrade program do get preferred access. Did you even read the article? If you were not already in the upgrade program, you were not even able to reserve a phone in the store at all. SMH.

 

[mzbe]

Agreed. Apple dropped the ball but it is actively trying to make it right. If I were an iPhone Upgrade Program subscriber, I would be justifiably upset, but I would give them a chance to do the right thing before resorting to class action suit.

Not convincing, given that this nonsense has been going on for days now. I spent five hours (!) in total with Apple on the phone, including multiple failed attempts after (!) they had scrambled together their "upgrade program special task force".
I hope this lawsuit is a wake-up sign.
Signing up for the upgrade program means that you become a captive audience. If you're then being treated like a second class citizen, I don't think that makes any sense for Apple in the medium term ...

 

[mzbe]

This is pathetic! I know it's frustrating, but people will get their phones whe. They get them! I pre-ordered and got to wait until 4-10th October!!

^^^^ this is what makes you different from me (and other upgrade program customers). We could not preorder anything. Meaning: Without a concession on Apple's part, November is realistic for the more desirable configurations.
We continue to pay $40+ per month for the old device.
Next year, we can't even preorder (!) because our 12 month eligibility then is reset to November (= this year's delayed shipment) - or have to pay extra (on the "after 6 months you can pay us more" plan).

This is not how any company should treat their customers?
[doublepost=1473736193][/doublepost]Here's what I really want:

@Apple, listen up: I want you to put me on an automatic preorder (and exchange) for the next 10 annual iPhone upgrades.
You and me both know that I always buy the new shiny toy anyhow.
We can skip this silly foreplay and pretend that it is ever in doubt if I want the new iPhone.

Let's have a more honest relationship, starting now.


P.S.: The current IUP is the most negative thing I have experienced with Apple in the last 25 years.
That includes the lukewarm attempt of cleaning up the mess. I would at a minimum expect a press release and other proactive communication, plus making it right. Please fire whoever signed off on this.

 

[Smigit]

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.

Bingo. People signing up to that program are some of Apple's most loyal customers, they're the ones that want a day one phone every year. Had they even been in the same queue as other people perhaps there'd be less of a drama, but by all reports I've read they had very limited stock available to those in the program and Apple was taking orders from people not on the program well after they ceased offering the same units to those looking to upgrade. In addition, given the program uses a 12 months update to determine the upgrade point, if people can't secure stock until Oct/Neov Then they'll miss a likely Sept launch next year.

I'm not in the Upgrade program (only because its not offered in Aus), but I can see why people would be feeling burnt and pissed off. Apple would have easily been able to set aside X number of units assuming that people on the program would look to upgrade, and if people chose not to send excess units to the stores for launch day. That or offering people in the program a couple of hours head start to make an order would have served to not leave them feeling like a second class citizen.

Looking at what the lawsuit is requesting, I think the requests are actually fairly fair given the circumstances. Nothing seemed too unreasonable and if I was under this sort of arrangement its probably in line with what I'd request if the company couldn't provide a product.

 

[truthertech]

The situation may not be clear.
I'm on the upgrade program from Apple.
The people on the upgrade program appear to have been DE-PRIORITIZED.
We were told to come back on the 17th.
My wife was up with me (new order, not an upgrade) right when preorders opened and had no problem getting a new phone at the same time as me.
We were wondering what was going on.
I'm eligible for an upgrade.
I have no problem if I couldn't get one because I didn't make it in time, but that was not the case.

Be honest know, so the whole thread can see. Not that Apple is contractually obligated to give you a new phone instantly, but even if they were, as of the 17th, you still won't have completed your 12 months, correct? The absolute earliest you could have signed up was the 26th of September 2015, so if you got a phone on the 17th, you would be ahead of the game. Actually, according to the logic of the whiners and ambulance chasing lawyers, you would owe Apple for a week!!!!

 

[Sloppy.Joe]

You forgot:

Yes. Sarcasm didn't come through clearly

 

[ggibson913]

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?

I agree if you made 12 payments you should have been eligible for upgrade as was advertised.

 

[scoobydoo99]

Our insurance rates are going thru the roof because of these stupid lawsuits....
And guess what - COFFEE IS FREAKING HOT!!!!!

No. There is no such thing as insurance rates increasing due to "frivolous lawsuits". This is a myth perpetrated by corporations to trick voters into approving "tort reform" laws to limit damages. Courts are designed as the last defense that the people have against government and corporations run amok, and if you let them convince you that the justice system is costing you money, then they will win.

Regarding your last reference, PLEASE consider watching "Hot Coffee":
http://www.hotcoffeethemovie.com/Default.asp
The very fact that the hot coffee lawsuit has become a joke in our society is due to shrewd corporate propaganda that "reframed" the issue to make it a joke. This was purely a damage control tactic by McDonald's and their attorneys to manipulate the system trough public opinion. Check out the true story.

Regarding the iPhone upgrade lawsuit, the point is, court is the place for a judge or jury to hear the facts. We can't make educated analyses of the situation without all the facts that could come out in court. Why not let the plaintiff present their case in court? If it has no merit, they won't win.

I do agree that opportunistic lawyers are trying to make money in this case, but then Apple is also trying to make more money by reserving phones for new customers instead of upgrade program members that they know will upgrade anyway, so....

 

[pcmike]

No, but what good does a Boston law firm suing Apple so they can make millions, & giving Apple's customers nothing (maybe, what: a 50 cent rebate on their next purchase?) help anyone?
The law firm should be thrown out of court for filing frivolous lawsuits.
How does a class-action suit help Apple make & ship their phones any faster, or help customers?

Laws should help everyone, not just 1 law firm that want to make millions off of Apple & Apple's customers.

After reading a few of your dim witted posts, may I suggest you stop posting? You have zero clue about what you're posting..