Attorney General Matthew J. Platkin announced today that Apple Inc. (“Apple”) has agreed to pay a $150,000 civil penalty and change its business practices to resolve allegations of widespread merchandise pricing violations in Apple stores throughout the state.
The allegations stem from the Division of Consumer Affairs’ (“Division”) reinspection of 11 Apple stores subject to a 2017 consent order requiring Apple to install continuously available pricing information for iPhones, iPads, MacBooks, Apple Watches, and other electronic devices displayed on tables in stores throughout the state. Apple entered into the 2017 consent order to resolve allegations that the company’s in-store digital pricing system – which provides price information for electronic devices through apps and notifications launched from the devices themselves – violated consumer protection laws requiring prices to be plainly marked with a stamp, label, or sign on or near the merchandise.
In every store the Division reinspected, investigators found numerous display tables that lacked pricing information required by the 2017 consent order. Additionally, in every store, investigators found items – including charging cables, protective cases, and audio devices – being offered for sale without a selling price on or near the item, as required by the New Jersey Consumer Fraud Act (“CFA”), specifically the Merchandise Pricing Act. Several stores also failed to conspicuously post their refund policies, also required by the CFA.
“At a time when prices are skyrocketing, consumers deserve to know what they’re paying for products on the shelves. Once again, Apple has violated the law by failing to display the prices for products in their retail stores—keeping consumers in the dark,” said Attorney General Matthew J. Platkin. “It’s bad enough when companies violate the law once. It’s even worse when they are held accountable for violating consumers’ rights and then engage in the same unlawful conduct again. There is no excuse for Apple’s repeated misconduct here, and consumers deserve better. We’ll stand up for them every time.”
The $150,000 civil penalty is the Division’s largest-ever settlement under the Merchandise Pricing Act. The penalty assessed against Apple is memorialized in a consent order that also requires Apple to change its business practices by, among other things:
- not advertising, offering for sale, or selling merchandise in Apple stores unless the total selling price of the merchandise is: (a) plainly marked by a stamp, tag, label, or sign affixed to the merchandise; (b) apparent on the screen of the device itself upon limited interaction; or (c) located in close proximity to where the consumer finds the merchandise, so that consumers can independently know the price while looking at the merchandise without the need to interact with a salesperson;
- not requiring consumers to interact with an electronic device to determine the selling price of merchandise in Apple stores unless: (a) the total selling price is apparent upon limited interaction with the device; and (b) the total selling price is displayed clearly and conspicuously; and
- clearly and conspicuously posting refund policies for all merchandise in at least one of the following locations: attached to the merchandise itself; affixed to each cash register or point of sale; in a place where it is clearly visible to the buyer from the cash register; or posted at each store entrance used by the public.
The reinspections were conducted by Investigators Brian Penn, Roger Hines, and Murat Botas, under the supervision of Chief Investigator Edward George.
The State was represented in the matter by Deputy Attorneys General Sara J. Koste and Cathleen O’Donnell under the supervision of Deputy Attorney General/Assistant Section Chief Chanel Van Dyke and Deputy Attorney General/Section Chief Jesse J. Sierant of the Consumer Fraud Prosecution Section within the Division of Law.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.