Santa Clara, CA: Apple is facing a consumer fraud class action lawsuit over allegations that its Apple Upgrade Program prevented members from pre-ordering new iPhone 7 models.
The Apple upgrade program launched last year. It offers customers the option to trade in an existing iPhone after six months, as long as 12 of 24 payments had been made under the two-year monthly payment agreement.
The upgrades can only be made at a US Apple Store, not online. Also, Apple notes in the program's fine print that it "reserves the right to refuse or limit the quantity of any device for any reason".
According to the complaint, the iPhone 7 pre-order launch prevented Upgrade Program members from ordering some iPhone 7 models while allowing non-upgrade members to order the devices.
"While scores of customers signed up for the program and were ready to take advantage of the every-year upgrade with the release of the new iPhone 7 and 7 Plus on September 9, 2016, Apple had a different plan in mind," the complaint states.
Filed in California, by plaintiff Emil Frank of Brooklyn, New York, the lawsuit asserts that Apple's iPhone Upgrade Program prevents customers from getting "in line" to reserve a handset on launch day. Instead, members of the program have been told to "check back," the complaint states.
"In the meantime, they will continue to be required to make monthly payments on their older iPhones, and their eligibility for future iPhones will be delayed," the suit claims.
Plaintiffs are represented by Block & Leviton LLP.
