Apple Inc has agreed to a $1.8 million settlement in a class-action lawsuit claiming the tech giant misrepresented the security of its App Store and iTunes gift cards, leading to unauthorized redemptions.
The settlement targets consumers nationwide who purchased Apple gift cards and were subsequently scammed before they could use them, leaving Apple to address claims of negligence and to ensure restitution to impacted customers.
Apple's decision to settle follows allegations that its gift cards could be, and were, redeemed by unauthorized third parties. The scam, often involving copying gift card numbers in stores, led to unsuspecting customers purchasing and activating cards that had already been drained of value.
The settlement is divided into two categories. The "nationwide class" includes U.S. consumers who purchased Apple gift cards between March 2018 and July 2020 and faced unauthorized redemptions. The "California subclass" focuses on similar issues within California during May 2017 to February 2018.
Apple's $1.8 million settlement provides for refunds up to the full value of the purchased gift cards. However, the final amount may vary depending on the total number of claims.
Newsweek has reached out to Apple via email for comment.
The lawsuit accused Apple of failing to adequately secure its gift cards against the scams, leading to the loss of card value for numerous consumers. Plaintiffs argued that Apple's system allowed gift cards to be compromised and used without the knowledge or consent of the actual purchasers. While the Cupertino, California-based company has not admitted to any wrongdoing in the case, it opted for a settlement to resolve the claims.
Consumers eligible for a refund must submit a valid claim form by January 8, 2024. Required documentation includes a sales receipt with the purchase date, original price, and gift card number. A final approval hearing for the settlement is scheduled for January 17, 2024, providing an opportunity for further objections or approvals in the case.
The settlement with Apple over the App Store and iTunes gift cards comes alongside a separate $35 million settlement the tech giant agreed to regarding another class-action lawsuit.
That case involved consumers who experienced poor sound quality and impaired calling abilities with their iPhone 7 and 7 Plus models. The preliminary approval for the settlement, granted last month by Judge Jon S. Tigar of the US District Court for the Northern District of California, marks another development in Apple's legal landscape.
Class members of that lawsuit, covering those who owned an iPhone 7 or 7 Plus between September 16, 2016, and January 3, 2023, and who reported audio issues to Apple, are eligible to receive up to $349 each.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
To read how Newsweek uses AI as a newsroom tool, Click here.
