Apple has incurred a 900,000 Euro ($1.2 million) fine from the Italian Antitrust Authority for allegedly misleading consumers when it comes to warranties, the BBC is reporting.
Italians officials said in a statement that Apple failed to adequately inform customers that they were legally guaranteed two years of tech support under EU regulations, instead pointing them to Apple's own one-year warranty. Officials alleged that this led many people to pay extra for the company's AppleCare support program.
Apple provided "unclear information on payments for additional assistance offered to consumers" and had not "fully implemented the two-year guarantee by the producer."
Outside the EU, Apple's standard warranty on products generally lasts one year. AppleCare extends this guarantee for a year or two, which means the coverage overlaps with the legal warranty.
The penalties break down to 400,000 Euros for neglecting to point out the length of the EU guarantee, in both Apple's online and brick-and-mortar stores, and 500,000 Euros because it continued to offer AppleCare on top of the legal warranty.
The Authority said it is penalizing Apple's three Italian divisions, which includes Apple Italia, Apple Sales International, and Apple Retail Italia. Apple did not immediately respond to a request for comment.
In addition to the fine, the Authority said Apple must publish an excerpt of the ruling on its Web site to inform consumers. It is also required to amend AppleCare to indicate that customers are entitled to two years free support. Apple must act on these requirements within 90 days.
For more from the iPhone maker, check out PCMag's year-end review of Apple.
For more from Leslie, follow her on Twitter @LesHorn.
Source: http://www.pcmag.com/article2/0,2817,2398075,00.asp?kc=PCRSS05039TX1K0000762
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