iTunes violates Norwegian law
07.06.2006
The Norwegian Consumer Ombudsman is highly critical of the contracts Norwegian iTunes-customers have to enter into in order to download music from the internet. To become iTunes customers, Norwegian consumers have to relinquish fundamental consumer rights such as the right to freely use legally purchased products. "Being an international company does not entitle iTunes to disregard the laws of the countries in which it operates. The company´s standard customer contract violates Norwegian law," says Norwegian Consumer Ombudsman Bjørn Erik Thon.
iTunes goes to great lengths to ensure that its standard customer contract protects the company´s own interest. The consumers on the other hand are burdened with much responsibility but is given little clarification of what is actually is expected of them. "The contracts are both vague and hard to understand for the customers, and they´re clearly unbalanced to disfavor the customer. The consumers are clearly the inferior partner in the contract, and this in itself is illegal," says Consumer Ombudsman Thon.
One major concern for the Consumer Ombudsman is that iTunes limits its customers´ right to freely use legally purchased products. By implementing so-called DRM-technology - software and technology meant to protect downloaded files from illegal copying and distribution - iTunes can dictate which technology must be used to play music files, and also the number of times a customer can save and copy files. As of today, the only portable players able to play files downloaded form iTunes are Apple´s own iPods.
Furthermore, iTunes´ contract also entitles the company to at any time change the terms of the contract without notice, including the selection of players or software that must be used for iTunes-files, and also the number of times a customer can change or copy already purchased files. iTunes claims it is the customers´ responsibility to be updated on these changes in the company´s policy or contract terms.
"I understand that a company feels the need to protect its products from piracy. However, this should not negatively affect customers who through lawful means have obtained downloaded files. Today, iTunes´ use of DRM-technology renders the customers without rights in dealing with a company which on a whim can dictate what kind of access customers will have to products they have already paid for," says Thon.
iTunes´ contract also states that the legal relationship between the company and customers is regulated by English contract law. "It is clearly unreasonable to expect Norwegian consumers to have comprehensive knowledge of English law. Products marketed to Norwegian consumers in Norway are subject to Norwegian law - a right that cannot be waived by a clause in a company´s standard customer contract," Thon states.
The Scandiavian Consumer Ombudsmen jointly believe that iTunes violates fundamental Nordic consumer protection principles and laws. The Ombudsmen have joined forces in an effort to change iTunes´ illegal contract terms. Initially, the Norwegian Consumer Ombudsman is first in addressing problematic clauses in iTunes´ customer contract. The other Scandinavian ombudsmen have also contacted iTunes, hoping to establish a joint and constructive dialogue with to rectify the situation.
The Norwegian Consumer Ombudsman has given iTunes until June 21 to proceed with necessary changes in its customer contracts.
