Apple fined 10 million euros for misleading “waterproof” advertising on iPhone

The Italian regulator fined Apple 10 million euros for making “misleading claims” about the water resistance of the iPhone. According to the prosecution, the smartphone, which since the iPhone 7 is “waterproof”, is not guaranteed if it has water damage.

Thus, the Italian competition authority determined that Apple violated the rules in two situations, one more serious than the other.

Is the iPhone “waterproof” or not?

According to information on Monday, the fine was imposed by L’Autorità Garante della Concorrenza e del Mercato (AGCM). Translated into letters, this is the regulatory authority for competition and the market. In other words, it is the “arbiter” of competition who is responsible for ensuring that companies treat consumers and competitors fairly.

As described, the organization says Apple has made claims about water resistance without making it clear to consumers how that ability actually worked.

Instead, the Cupertino giant just announced ideal laboratory conditions. According to the same organization, the phones had not passed the same tests in real conditions. Thus, the company breaks the rules in two situations.

The first concerns the sale of various iPhone models. Among them, the iPhone 8, iPhone 8 Plus, iPhone X, iPhone XR, iPhone XS, iPhone XS Max, iPhone 11, iPhone 11 pro and iPhone 11 pro Max.

In its advertising, Apple states that each product is water resistant to a maximum depth that varied between 4 meters and 1 meter, depending on the model, for 30 minutes.

However, according to the Authority, the messages did not clarify that these allegations will be true. only in the presence of specific conditions.

One thing is the laboratory, another is real life

IPhones have such capabilities (IP67 and iP68 certified), but AGCM states that these characteristics are only obtained during specific and controlled laboratory tests.

That is, according to the regulator, Apple achieves such results, but only with the use of pure and static water, and not in the normal use of devices by consumers.

Second, and more seriously, Apple made claims about the iPhone’s water resistance in its marketing, but warranty service refused on phones that have suffered water damage.

Herein lies the main point of this accusation. According to the regulator, Apple ensures that the iPhone is “resistant to continuous immersion in water for up to 30 minutes (1, 2 or 4 meters deep depending on the model).” However, the company has disclaimed liability for any water damage by stating that “the warranty does not cover damage caused by liquids.”

Therefore, the Italian regulator sees in this Apple condition a contradiction. Therefore, claiming that it is waterproof and suitable for diving, when, on the other hand, claiming that the warranty does not cover damage caused by liquids, suggests that there is misleading advertising.

Said marketing and the guarantee clauses can mislead the consumer by not clarifying what type of guarantee it refers to (conventional guarantee or legal guarantee).

As such, lacked an adequate contextualization to the conditions and limitations of water resistance claims.

The reality of Apple’s aftermarket

The competition regulator also deemed it appropriate to consider Apple’s refusal, in the after-sales phase, to honor warranties when these iPhone models were damaged by water or other liquids. Such behavior deprives customers of the rights they should expect from the warranty or the Consumer Code.

Apple equips iPhones with internal indicators that show when water has entered the device. The Cupertino company uses these flags to decline warranty repair or replacement when this flag is on.

This means that customers hear one thing when they buy the phone, but can get another when they need after-sales service.

As a result, Apple was fined ten million euros. In addition, it was forced to post a notice on its Italian website via a link “Information on consumer protection”.

Now, potentially, it could open the way for similar decisions in other countries of the European Union. Also, it can lead to class action lawsuits in the United States and elsewhere, now that the problem has been highlighted.

The problem is in the warranty and not in the “raincoat”

IPhones are water resistant and go even beyond what Apple advertises as resistance. In fact, there are many videos to prove it.

However, the warranty that Apple provides (as with Mac computers, for example) excluded water damage without having a “list” of possible situations beyond normal use of the equipment, which includes diving, depending on the characteristics. described by the brand.

In that sense, the regulator uses this controversy and these omissions to fine Apple.

Apple has yet to comment.