Consumer, Dealer Class Action Lawsuit Filed Against Apple (UPDATE)
TMO Reports - Consumer, Dealer Class Action Lawsuit Filed Against Apple (UPDATE)
by , 8:00 AM EST, February 18th, 2005
A group of consumers and Apple resellers filed a class action lawsuit Thursday accusing Apple Computer of unfair and unlawful business practices, breach of contract, misappropriation of trade secrets, and violation of consumer warranty laws, documents obtained by The Mac Observer reveal.
The 26-page complaint, filed Thursday in San Francisco County Superior Court, was on behalf of Jack Branning, James Seybert, Stacey Blevins, Tom Siechert and Joe Weingarten. The plaintiffs are represented by two San Diego-based law firms and another firm headquartered in San Clemente, Calif.
Of the five plaintiffs, two are former Apple resellers. Records indicate Mr. Siechert is a former computer buyer in the procurement department of California State University, based in Fresno, Calif.
Mr. Weingarten is the former owner of Weingarten Gallery, a Apple resellers based in Dayton, Ohio, and is the head of the Apple Resellers Association, a organization for some 70 resellers across the U.S.
"Apple is pushing dealers to the point of where they're going out of business because of their actions," Mr. Weingarten told The Mac Observer. "We had no choice but to go through with this suit."
Mr. Branning is a Macintosh owner and user from San Francisco. Mr. Seybert and Ms. Blevins are Apple products owners, also residing in California.
The suit accuses Apple of repackaging and selling refurbished machines to resellers and consumers as new products "when in fact they are used," the complaint states. Defendants in the case say they can prove the products were used because when they paid for AppleCare extended warranties, the contracts expired earlier than expected and Apple then admitted they were used.
Resellers also charged that Apple has unfairly and unlawfully withheld product from the reseller channel in an effort to stock the shelves of its own retail stores and reap more sales and profit. The dealers also alledged Apple has illegally priced its products to undercut independent dealers and have often sold products below cost to steal away business.
Other allegations include...
In addition to these allegations, the two resellers say they can prove Apple has stolen customer contact information and has directly approached customers on those lists to sell to them direct at prices small resellers can't match.
The suit says damages and losses to the three consumers in the case "do not exceed US$75,000." The defendants are requesting a jury trial.
The filing of the suit came just hours after the House of Representatives voted 279 to 149 in favor of a bill that will curtail multimillion-dollar class action lawsuits against companies. Sources tell TMO the suit has "been lying in wait for the right time" to be filed before it became law.
The GOP-controlled Senate passed the bill a week ago by a 72-26 vote. President Bush signed the bill Friday, describing class-action suits as often frivolous.
The bill "will help protect people who are wrongfully harmed while reducing the frivolous lawsuits that clog our courts, hurt the economy, cost jobs, and burden American businesses," Mr. Bush said.
Under the legislation, class-action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of the plaintiffs are from the same state. But if fewer than one-third of the plaintiffs are from the same state as the primary defendant, and more than $5 million is at stake, the case would go to federal court.
Consumer groups and trial lawyers fought against the bill, but lost their struggle when Republicans gained seats in last falls elections and Democrats defected on the issue. Democrats say Republicans just want to protect corporations from taking responsibility for their wrongdoing by keeping them clear of state courts that might issue multimillion-dollar verdicts against them.
Observer Comments
The complaint was written by lawyers who are probably working for a percentage of the profits, er, award. They can write anything they want and at 26 pages they probably threw in everything, including the kitchen sink.
Resellers do face a challenge these days. They are between the mass merchants that receive much higher traffic and the Apple Stores, which are setting new standards in computer retailing. While there are some good ones there have also been a lot of posts about resellers with crummy stores and poor customer service.
End result:
Customers will probably get a $25 coupon against their next Apple purchase.
Resellers will get written assurance that they will get deliveries at the same rate as the Apple Stores as long as they pay their invoices by the due date and the lawyers will make millions.
In fact, I live around the corner from Macadam in SF. They, in a word, suck. Poor customer service, incredible prices, arrogant attitudes--and I am an IT manager for a Mac based law firm. I'm glad they went under--it was a poor store, a bad representation of what the macintosh is all about. I gladly shop at the apple store in SF, where the staff are friendly and helpful, the attitude is positive, and teh presentation is superb. Good ridance to all those resellers who did nothing for the mac for many a long year.
And 2 cheers for the good resellers (like PowerMax in Portland!) who continue their tradition of good customer service, cheap prices, etc, and continue to have a good relationship with apple.
The federal legislation is designed to curtail class actions, not make them easier. No one has been lying in wait for the act to become law. If anything, you would expect class action attorneys to try to get thier suits filed before the laws effective date so that they could more easily certify a nationwide class.
"And 2 cheers for the good resellers (like PowerMax in Portland!) who continue their tradition of good customer service, cheap prices, etc, and continue to have a good relationship with apple."
I think you have no real basis to make this assertion. You think Apple is so saintly that it's taken it upon itseld to systematically push out bad dealers? Let's say "mobbing" the crummy dealers?
You know that's a crime if it's true. There are probably mature, legal recourses apple could take to cut loose those sleazier dealers we've all been exposed to.
I guess I don't know why five people constitute a "class". Whether Apple's actions were illegal or not is up to the system. These 5 people may indeed have legitimate grievances against Apple. We won't know until the trial. It just p****s me off when some group wants to paint me and others as part of their class (in this case Apple's Consumers) so they stand a better chance of hitting the lottery. I wasn't harmed, most of Apples customers weren't harmed, most people weren't harmed by Apples alleged actions. Yet apparently from the text of the article these five individuals from across the country are presenting themselves as the leads in a consumer class action.
Five pissed off people aren't a "class".
Well, the complaints against Apple a real und understandable. While selling used machines may have been an exception, their business practices are not. They just as mean, dirty and unethical as possible. In other words, they are modern business practices. Apple is 'good' because it has good products, better ones than their rivals. Other than that (ethically that is), Apple is no bit better than Microsoft. They cheat, lie, bully ... use unfair methods. Look at the latest law suits initiated by Apple against rumor sites. Do they care about freedom of press? Do they care about 'enthusiasts'. No. I'm saying this because it's so funny how some ppl seem to think that Apple is somehow morally superior to any other company.
Well, whether they're a class is for the court to decide. They've filed a motion requesting, among other things, that the court certify the class, which means that the judge recognizes that there are many parties with essentially the same issue to litigate.
Basically, the MacAdam guy doesn't want to own up to the facts: he did a lousy job and when the customers in SF got the choice of going to the Apple retail store instead of MacAdam, they voted with their dollars.
If this farce ever gets to court, I sure hope a few of the people who've complained about Mac Adam over the years show up on the witness list. I'd pay to watch that show!
QuoteGuest wrote:
If you were losing money and had to go out of business due to Apple being shady, I bet you'd be a bit pissed off too. Somehow I doubt these people would file a lawsuit if most of the accusations weren't true. Good luck to them. They deserve to be compensated.
What if they went out of business because they just sucked? Santos says it was all Apple's fault, but I've seen enough messages from his former customers to take anything he says with a grain of salt.
Funny part is that you don't seem to hearr the online Macc retailers complaining, MacZone,CDW,MacConnection etc. What you do hear is the "specialist" shopws of which there are two near where I am.
Both SUCK. Arrogant and more concerned with thingss not tthe walk-in customer. High Repari rates and so on.
If these guys are like the onees I've seen, wee're bett off without them.
I used to work for a VAR here in Southern California. Would I take my own products back there definately not. Cyber3 or I think they changed their name to "The Mac Shoppe" here is by far the worst dealer. They always fail to repair the problem correctly the first time. Their prices just suck, and they are arrogant assholes. Now I have a consulting business and am a member of the Apple Consultants Network, I know quality and VARs with the exception of a FEW!!!! are horrible and paint a poor face for Apple products. The VAR I used to work for didn't even have a demo model of every Mac for customers to play with and make a good decision.... just an outdated 233 Bondi Blue iMac when the machines were at 600MHz.... The Apple Stores are much better and if customers only had to deal with shitty VARs like Cyber3/"the mac shoppe" and no one would want to buy a computer from them when they can go to a much nicer storefront like BestBuy or CompUSA (not a fan of them just saying their presentation tends to be much better...) and buy something that looks like it's quality not a sleazy alley transation.... please if these guys are suing it's most likely because their business practices suck... would you buy a Ford from "Rent-A-Wreck" or a Mercedes Benz from a sleazy dealership? Do you think Mercedes-Benz would want you to buy a benz from that sleazy dealership? Please people it's business.
Sorry but apple deserves this is they were selling used machines as new. I'd be upset apple admitted after I bought my machine "new" and was infact used. They would have two choices. One. they could send me a truely new machine, or I would personally sue them. Yes there is the court costs etc... but really who cares. Even if I ended up loosing money, it's all about the principal.
Mon Feb 21, 2005 4:50 am Subject: Eggs in one basket?
I'm no legal expert, but I find it odd that they're wrapping all these plaintiffs into a single lawsuit. It seems like they're addressing two completely different types of complaints from two completely different types of plaintiffs.
If Apple was sending out used or refurbished equipment as new, then yes, that's a practice that should be stopped, and they can be slapped on the wrists pretty hard for it.
If -- IF -- Apple was tinkering with their third party resellers' supply chain in a way that was in fact an illegal business practice, that seems like a totally different issue. Complicating matters is the very conspicuous fact that it seems like it's only the third-party stores who had poor business practices and customer service records themselves making these claims; all the more reputable resellers seem to be competing and getting along well enough, suggesting that maybe the resellers in the lawsuit are just trying to blame Apple for their own shortcomings.
But again ... why these two different matters are being folded into one lawsuit, I don't know. Maybe the resellers feel that if they bundle their case in with a more legitimate one they'll have a better chance at winning, even if the cases are ultimately unrelated.
Mon Feb 21, 2005 10:13 pm Subject: Sorry iLemmings But Your New iMac Could Be An iLemon
i live in london in England, although i bougt my mini ipod in New York. the legal case just gone through in america states that aplle has to repair all ipods in the US. does that include me bacause i bought it there? because the store in Regent Street London won't repair it because it has "cosmatic damage" i.e a scratch on the side. the problem is with the battery not holing its charge, surely that has nothing to do with apperence?
I got a macbook i was sure had been opened, but the store gave it to me in my hand, was in plastic and all, yet when i took it home it had scratches!
i tried calling apple, i got it in spain since i go to school here for another year, and guess what, calling them was a nightmare full of denials.
how would you like to get someone a gift for 1400Ђ only to find it was a refurbished computer., you apple geeks think its ok to allow apple to do whatever they want, well its wrong and illegal, apple should NOT sell refurbished macs at full prices.
Mon Aug 06, 2007 9:47 am Subject: Re: i was ripped by apple
QuoteAnonymous wrote:
I got a macbook i was sure had been opened, but the store gave it to me in my hand, was in plastic and all, yet when i took it home it had scratches!
i tried calling apple, i got it in spain since i go to school here for another year, and guess what, calling them was a nightmare full of denials.
how would you like to get someone a gift for 1400Ђ only to find it was a refurbished computer., you apple geeks think its ok to allow apple to do whatever they want, well its wrong and illegal, apple should NOT sell refurbished macs at full prices.
If you didn't buy it in an Apple store, then your argument is most likely with the store you bought it from. What is to prevent THEM from selling you a "used" machine as new? Considering the only "plastic" they are wrapped in from the factory is the thin, white sleeve with the label holding it closed (which is easy to close again without making it look like it had ever been opened).
If the box it came in was shrinkwrapped, then the store did that themselves. The boxes come from Apple with only a small, round piece of clear tape holding the lid closed.
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated November 22nd
- Fri, 7:07 PM
- Games - Soccer Sim Championship Manager 2010 Released for Mac
- 6:47 PM
- Games - EA Publishes Original Monopoly for iPhone
- 6:15 PM
- News - Original Apple I on Ebay for $50K, w/Letter from Steve Jobs
- 6:11 PM
- Games - New iPhone Games: Secret of the Lost Cavern Ep 1, New DJ Nights, More
- 5:47 PM
- Games - Star Trek D-A-C Game Headed to the Mac Next Month
- 4:57 PM
- Product News - TidBITS Releases “Take Control of Syncing Data in Snow Leopard”
- 4:26 PM
- John Martellaro's Blog - Particle Debris (week ending 11/20) Stationery Pads Go Poof
- 2:59 PM
- Free on iTunes - Musée du Louvre, Art Lite, SketchBook Mobile X and More.
- 1:50 PM
- Deal Brothers - Acer P215H bmid 21.5” Widescreen LCD Monitor: $139.99
- 11:24 AM
- TMO Appearances - Jeff Gamet Shares More Holiday Gift Ideas on MacJury
- 10:43 AM
- Product News - Cocktail 4.5 for Leopard Adds QuickLook Cache Clearing
- 10:06 AM
- News - Hack Enables Mac OS X 10.6.2 on Netbooks
The Mac Observer Reader Specials
- TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com
OWC: Get the Right Memory for Your Mac Top Quality, Competitive Price, Lifetime Backed Free Expert Support + Installation Videos too! MacBook & mini 8GB, iMac 16GB, Mac Pro up to 32GB. Click here
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

