Apple Hit With Class Action Lawsuit Over iPhone Upgrade Program Woes

[thefarang]

I just got off the phone with a guy from the 'Executive Communications' department or whatever, basically the people you end up speaking to if you email the execs which is what a lot of us have done. He said they're so very sorry about what's happened and Tim Cook is WELL aware of the issue both in the US and in the UK. They said they really believe people will be able to get the configuration they want over the weekend and into next week, as demand becomes a little weaker. He went on to explain that Black and Jet Black models were in particular high demand and they would be prioritising these models after launch so people can get what they want eventually. He said they appreciate the feedback and that people should be assured that the highest execs in the company are well aware of what's going on and how angry people are.

He said he was certain the system would be improved for next year. I'm pretty satisfied with that answer, he knew exactly where I was coming from and I could tell the opinions he was sharing matched mine and were very candid and I'll be eagerly trying to get a reservation in for this weekend if not sometime next week, he seemed pretty confident on that.

For what it's worth, he said the Managing Director had personally forwarded my email for follow up. I didn't ask if Tim Cook had seen it too, but I'd presume not.

No offense but while I think it's nice to hear that all of this is going on, if they actually meant what they said I would have an email in my inbox telling me sorry that I couldn't order on Friday Sept 9 and here's what they are doing to make good.

See, the problem here is not people like you who have sent emails or the people who via this and other websites have learned about the 1-800-MY-APPLE phone number and the IUP task force, but the tens or hundreds of thousands of IUP people who have received no communication from Apple. The people who were told to come back on Sept 17 and click the "Check Store Inventory" button like trained monkeys.

Until Apple makes those people good, I don't think all of the glad handling in the world is going to make me feel better about how Apple is dealing with this.

It's a monumental screw up on their part. There is simply no way that someone at Apple didn't understand that this is exactly how the program would work. It wasn't a glitch in the website or ordering software. This was the plan.

I'm not saying Tim Cook or Phil Shiller knew but I can assure you that somewhere down the line from them, someone knew.

The only problem is, they didn't know it would blow up like it did.
[doublepost=1473779952][/doublepost]

If you signed up betting on getting an upgrade after making exactly 12 payments, that's on you.
There was never any guarantee that Apple would release the next iPhone exactly on a 12 month schedule! What if it was delayed due to manufacturing issues beyond their control? Would you still be upset you had to pay for a 13th. month leasing your existing phone?

Well, Apple did specifically advertise it such that you can upgrade every 12 months. So while there was no guarantee, they certainly were tying to lead the public into believing that there was a 12 month schedule.

A company cannot strongly suggest something in order to make a sale if it knows otherwise. So, if Apple was heavily implying that every 12 months one could get the latest and greatest iPhone and they knew that they were now going to start releasing phones every 2 years, you could sue them and you would probably win.

Even if there is nothing in the contract that guarantees they'll release every 12 months. Based on their previous release cycle you had a reasonable expectation that they would continue to release on the 12 month cycle and they promoted that belief while knowing it not to be true.

Now, if their factory blew up and at the time they had made the offer they had no way to know this would delay new products, then they have a defense that would have a pretty good chance of holding up in court.

That said, I would not be upset if due to circumstances beyond Apple's control they slipped to a 13th month. However, I would be very angry if they allowed it to slip on purpose in order to collect a 13th payment.

 

[AsherN]

That's probably because you know nothing about the law. You can't promise in your marketing to allow people to upgrade every 12 months and then restrict stock to them which assures that they cannot upgrade every 12 months.

Except that's not what the agreement says. They offer you a 24 month 0% loan an an iPhone and Apple Care+. After both 6 calendar months and you having paid the equivalent of 12 payments, you are eligible to get a new device, cancelling the loan and entering in a new 24 month agreement. Subject to availability of stock. What if the iPhone 7 had been anounced in November this year?

 

[rendyr]

 

[linkgx1]

For those defending Apple...know this. If people can't get their phones when they want...there's a chance they will exit the program. If they exit the program then there's a chance that they may switch to a different competitor. Just something to think about.

 

[thefarang]

Except that's not what the agreement says. They offer you a 24 month 0% loan an an iPhone and Apple Care+. After both 6 calendar months and you having paid the equivalent of 12 payments, you are eligible to get a new device, cancelling the loan and entering in a new 24 month agreement. Subject to availability of stock. What if the iPhone 7 had been anounced in November this year?

Please refer to all of the Apple marketing, Apple's announcement of the program, and the script used by reps in the Apple Stores 12 months ago.

As I said in a previous reply, if the iPhone 7 was unavailable in Sept due to some unforeseen circumstances, I have no problem with that.

However, if Apple intentionally blocked IUP people from buying iPhones thus forcing them into 13th and 14th payments, well, I have a BIG problem.
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For those defending Apple...know this. If people can't get their phones when they want...there's a chance they will exit the program. If they exit the program then there's a chance that they may switch to a different competitor. Just something to think about.

Actually, for those defending Apple, I really, really hope Apple doesn't screw you. The next time Apple screws over a bunch of people I'll be checking this thread to see if you're the one complaining. Karma, baby.

 

[blueruck]

Poor Emil Frank - https://www.linkedin.com/in/emilgfrank

I feel sorry for Redhat for employing such a whiner
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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?

Their phones are not delayed a whole month, it might be a few days - I ordered mine yesterday and it no later than Monday.

 

[Lm619]

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.

You are correct, I don't think the other people really see what went wrong. I see the lawsuit as valid. I had to call 1-800-MYAPPLE for 2 hours to have someone attempt to reserve a phone for me. I was able to place another upgrade a few days later after launch with AT&T on their site just fine and stil get that upgrade on time. Hopefully Apple gets it right next year and allows you to get your phone mailed and return your old one via mail or in store after a few days.

 

[nchristus]

Except that's not what the agreement says. They offer you a 24 month 0% loan an an iPhone and Apple Care+. After both 6 calendar months and you having paid the equivalent of 12 payments, you are eligible to get a new device, cancelling the loan and entering in a new 24 month agreement. Subject to availability of stock. What if the iPhone 7 had been anounced in November this year?

There's a bit of a discrepancy between what the Upgrade Program was marketed as and the actual service its members experienced as part of the pre-order and upgrade process. Apple communicated that the Upgrade Program was the easiest way to get a new iPhone and that the program's members would be the "first to upgrade," even encouraging customers to join in their recent keynote event.

 

[mytdave]

And some people wonder why lawyers are so despised.

 

[Loftonian]

This is a 'small" sort of an issue if you know the details of the IUP program. You get the best deal by upgrading at 12 months rather than waiting the 24 months. Apple customers expect to do that at launch and since there was no available method for them to reserve iPhone they are having to pay an extra month... 40 bucks out of pocket at the most. Not a lawsuit sort of issue in my opinion.

 

[thefarang]

This is a 'small" sort of an issue if you know the details of the IUP program. You get the best deal by upgrading at 12 months rather than waiting the 24 months. Apple customers expect to do that at launch and since there was no available method for them to reserve iPhone they are having to pay an extra month... 40 bucks out of pocket at the most. Not a lawsuit sort of issue in my opinion.

Unless you have the ability to think at scale. Let's say 1,000,000 people all pay an extra $40 this year and then sign a new two year agreement which starts in October. That means next year if they want a phone in September they have to again make another extra $40 payment.

That $40 out of pocket just turned into $80 million.

I don't know if it's 1,000,000 or 100,000 but the math follows the same pattern. While $40 doesn't seem like a steep price to pay when you multiply it over the number of people in the program it becomes a very large number and an incentive for someone to continue to screw over their customers.

 

[mzbe]

From the terms and conditions of the upgrade program:

1. Eligible iPhone Availability. Purchase of a new eligible iPhone is subject to availability at the time you exercise your Upgrade Option. Depending on the eligible iPhone model chosen, your monthly installment payment may change.

Simple... if there's no phones, there's no upgrade. No bait and Switch. Just common sense. I expect when the iPhone 8 is released next year, for the first time, I won't get it on launch day because I'm in this program. I'm okay with that... I still get the option to get one.

The key word is "discriminatory". As in: Everbody else can preorder without restrictions, except IUP customers. Following your logic, Apple would be entitled to keep the IUP eligible stock as close to zero as they please, for as long as they please. Which is exactly what happened, of course.

 

[devloncowart]

It's right there on the information page under "Questions about Upgrading"

I mean when they first signed up last year.

 

[CFreymarc]

That's probably because you know nothing about the law. You can't promise in your marketing to allow people to upgrade every 12 months and then restrict stock to them which assures that they cannot upgrade every 12 months.

Marketing promo is one thing. What is in the service contract is something else. If there is a "based on available supply" clause in the contract, no matter what promo is stated, then the lawsuit will fail.

BitFit is going though the same BS with someone claiming the marketing material "infers clinical use" while they never did any FDA certification of their devices as they are not intended for clinical use.

 

[koa]

iUP Lives Matter! Cue the sit-ins...

A portion of the contract might not have been fulfilled in a timely matter depending on the wording of the contract. Apple appears to be trying to find a solution as quickly as possible. At best, ones damages will either be a monthly payment or payments for reimbursement less what it would cost one to rent a phone during the that time.

I prefer to buy phones outright, sell them when I want to upgrade since that usually beats any deals anyone else offers. I could make the argument that many people buy into the monthly payment programs because they really can't afford to buy the phones outright. I realize there are many people that can afford it, but those that make the argument they are earning interest on their money are barely earning anything in today's low interest rate climate.

If one feels misled by Apple's marketing... Good Luck! There are many erectile dysfunction supplements that are a bit of a stretch, don't you think?

 

[davidgolfer]

This was Apples big plans all along, sign people up on these contracts then delay the release. They are skipping next year all together, no Iphone next year. Conspiracy Theory or Evil Tim.

 

[Phone Junky]

...That means next year if they want a phone in September they have to again make another extra $40 payment.

All based on the assumption that the next iPhone comes out next September. Even if it does, why why why do "they" have to have it at launch? Crying over not getting the latest shiny thing from Apple right away? What is this world coming to?

 

[CFreymarc]

I prefer to buy phones outright, sell them when I want to upgrade since that usually beats any deals anyone else offers.

1) Buy new iPhone for cash
2) Move data from five to six iPhones ago to new iPhone
3) Restore old iPhone
4) Sell old iPhone slicing the cost of your old iPhone in half
5) Wait a year
6) Rinse and repeat

 

[Tech198]

ok, so no one wants to give Apple time to fix this i see.

1) Buy new iPhone for cash

No,,, User thinks first..

 

[jlc1978]

For those defending Apple...know this. If people can't get their phones when they want...there's a chance they will exit the program. If they exit the program then there's a chance that they may switch to a different competitor. Just something to think about.

I doubt Apple worries about that .01% of their customers; in fact given the uproar from a few and a lawsuit those are the customers you want to fire. Just because someone is a customer doesn't mean you want to keep them as a customer.

 

[Aibocyrus]

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 think that when it comes time for iPhone, you sign up knowing what it is going to be like. And I am sure in the disclaimer it must talk about availability. Just because that is what your plan is(to upgrade after 12 payments) doesn't mean that is how it will work out. Though it may be very frustrating, you did sign a contract and it is your responsibility to follow through on that contract.

 

[kopitedavo]

i bet they are the ones that DONT want the headphone jack

 

[flat five]

Well, Apple did specifically advertise it such that you can upgrade every 12 months. So while there was no guarantee, they certainly were tying to lead the public into believing that there was a 12 month schedule.

they specifically advertised you can get a new phone every 6 months, right?

"With the iPhone Upgrade Program, you can spread the cost of iPhone over 24 months. But you can also upgrade to a new iPhone after just six months"
http://www.apple.com/shop/iphone/iphone-upgrade-program

 

[thefarang]

they specifically advertised you can get a new phone every 6 months, right?

"With the iPhone Upgrade Program, you can spread the cost of iPhone over 24 months. But you can also upgrade to a new iPhone after just six months"
http://www.apple.com/shop/iphone/iphone-upgrade-program

Phil Schiller: If you're like me and you like to have a new iPhone every single year this is the best way to do that. With the iPhone Upgrade Program you can get an new iPhone every year."

http://www.mirror.co.uk/news/technology-science/technology/new-iphone-every-year-no-6414719

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All based on the assumption that the next iPhone comes out next September. Even if it does, why why why do "they" have to have it at launch? Crying over not getting the latest shiny thing from Apple right away? What is this world coming to?

Sorry you're unable to read through any of the other posts. Nobody said you had to have it at launch. But, if I stay up until midnight and one one tab in my browser I am purchasing via the iPhone upgrade program and in the other I'm making a regular pay in full purchase and the IUP one says they're out of stock and I should try back in a week and the pay in full one shows plenty of inventory and I can still have it delivered on launch day, uhm, doesn't that seem a bit like a kick in the testicles since waiting costs me money?

I've said from the very beginning, I don't need it on day one. But give me a ship date and let me complete my transaction rather than having to come back and check for inventory on a daily basis after the product launches. That's it. Few people have asked for anything more than that. Just take our order and tell us when it'll arrive. We don't want to go to the front of the line. We don't want any special treatment. We just want the same deal as everyone else.

Apple's penalization of IUP people guarantees they'll be near the end of the line in terms of people getting their phones and since IUP people are paying for that time it seems rather shady.

Now, if Apple decided not to release the product until November, that's fine. Nobody is being excluded from ordering. But when you actively prevent someone from taking advantage of one of the main benefits of the program and make them pay more, that's fraudulent IMHO.

 

[flat five]

Phil Schiller: If you're like me and you like to have a new iPhone every single year this is the best way to do that. With the iPhone Upgrade Program you can get an new iPhone every year."

http://www.mirror.co.uk/news/technology-science/technology/new-iphone-every-year-no-6414719

huh? i'm not quite sure what your point is? (or maybe you quoted me by accident but meant to reply to someone else?)


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you said:
Apple did specifically advertise it such that you can upgrade every 12 months.

then i said:
they specifically advertised you can get a new phone every 6 months, right?
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like- i don't think they specifically said you can get an upgrade every 12 months.. the way it sounds to me is that you can get a new phone every 6 months, or every 7 months, or 8,9or10, or 11 or 12 or 13 or 14 months etcetc.. until month 24.. at which point, you own the phone.

is that right? is that the deal?