Apple’s repair policy under fire from ACCC

Consumer watchdog Rod Sims has launched court action against Apple over alleged deception on consumers’ rights.

Consumer watchdog Rod Sims says Apple has engaged in ­“extremely serious conduct” in blocking customers from using third-party repair shops, as the ACCC launched court action against the tech giant over ­alleged deceptive represen­tations on consumers’ rights.

The chairman of the Australian Competition & Consumer Commission said that for at least two years, some iPhone and iPad users had experienced “Error 53”, which renders a device ­inoperable if a repair has been ­detected coming from someone other than Apple.

Many customers who had previously cracked a screen and had it repaired outside Apple’s walls were met with the error and, upon informing Apple, were purportedly told a free remedy was not available given the prior use of “unauthorised repairers”.

The watchdog says where the fault was not related to any previous third-party repairs, Apple had an obligation under Aus­tralian consumer law to work with its customers in amending faulty ­devices.

“We’re alleging what they’re doing is illegal, and I’d like to think if we’re successful it has ­implications overseas as well,” Mr Sims said. “It’s a very serious matter because people have been left in a very difficult situation where they couldn’t get their phone corrected from being disabled.

“These are expensive things — iPhones and iPads — and we allege there’s been a lot of consumer harm here.

“We’re extremely confident about our position on this and if we’re successful, we’ll be seeking very significant penalties.”

Campbell Thomp­­son, the founder of repair shop ­idroppedit.com, said if Apple was forced to honour warranties, it would “monumentally change” the repair industry.

“(The current policy) leaves a sour taste in our customers’ mouths when other issues arise with their iPhone that are not ­related to our screen replacement,” he said.

“These typical issues are battery, charging port, reception or any other fault with the device. From our experience, both the Apple geniuses and the customer are aware that the screen replacement has not caused the issues (but) this is Apple’s ‘policy’ and a way for them to dishonour faulty handsets.’’

Mr Thompson said Apple did not release spare parts to the market, making it impossible to keep Apple products in warranty when replacing a screen in any location other than a certified Apple Store.

“This is self-serving behaviour benefiting no one else other than the shareholders of Apple,” he said.

Apple did not respond when contacted for comment.

Additional reporting: Daniel Palmer