Apple agrees to pay $1.8 million to settle gift card class action lawsuit


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Apple has agreed to pay $1.8 million to settle a class-action lawsuit that accused the company of misrepresenting the security and value of its gift cards. The lawsuit claims that Apple misled customers about the security of its gift cards. They also said that the company failed to disclose that they could be easily hacked. This class action lawsuit alleges that Apple failed to adequately protect the security of its gift cards. This caused the value of the gift cards to expire when users redeemed them by unauthorized third parties. Users believe Apple should have informed them of possible theft risks in advance. They also claim the company should have taken additional steps to protect their gift cards. In this article, we will discuss the details of the lawsuit and the settlement, as well as what it means for Apple customers.

Apple gift card settlement
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Background

The lawsuit was filed in 2021 by a group of customers who claimed that Apple misrepresented the security and value of its gift cards. The plaintiffs alleged that Apple failed to disclose that its gift cards could be easily hacked and that the company did not take adequate measures to protect its customers from fraud. The lawsuit also claimed that Apple misled customers about the value of its gift cards. It did this by failing to disclose that they could not be used to purchase certain items, such as Apple products.

Consumers argued that Apple misrepresented the value and security of its gift cards. They claim the company failed to warn users that their gift cards could be stolen. The settlement provides a refund for the lost value of stolen App Store & iTunes gift cards. Eligible buyers have until January 8, 2024, to file a claim.

Lawsuit Details

The lawsuit was filed as a class-action lawsuit, which means that it represented a group of customers who had all been affected by the same issue. The plaintiffs sought compensation for the money they had lost as a result of the alleged fraud, as well as damages for the harm caused by Apple’s misrepresentations. The lawsuit was settled in 2023, with Apple agreeing to pay $1.8 million to the plaintiffs.

Apple gift card settlement
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The plaintiff believes that Apple’s gift cards have silver scratch-off PIN codes. After purchasing a gift card, these PIN codes are equivalent to the customer’s “personal data”. If the PIN is leaked, the personal data will be stolen. To receive settlement benefits, class plaintiffs must submit a valid claim form by January 17, 2024. The settlement will provide compensation to customers who purchased App Store or iTunes gift cards between 2019 and 2021. It also applies to California users who purchased gift cards between May 2017 and February 2018. These users also experienced unauthorized redemptions of gift cards and were denied refunds or replacements.

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Apple Gift Card Settlement Details

Under the terms of the settlement, customers who purchased App Store or iTunes gift cards between 2019 and 2021 will be eligible for compensation. The value of the settlement each class member receives will be up to a maximum of the amount they spent on gift cards during that period. Customers who believe they are eligible for compensation can file a claim on the settlement website.

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According to the settlement administrator, anyone who bought an Apple App Store & iTunes gift card in the U.S. between March 2018 and July 2020, and whose card was redeemed by “an unknown third-party” prior to activation, is eligible for the settlement. People who purchased App Store & iTunes gift cards in California between May 2017 and February 2018 can also claim a refund. However, it should be clear that this settlement does not require Apple to admit any wrongdoing.

Impact on Apple Customers

The settlement is good news for customers who were affected by the alleged fraud. It provides compensation for the money they lost. It also sends a message to Apple that it needs to take the security of its gift cards more seriously. However, the settlement also highlights the need for customers to be vigilant when purchasing gift cards. Customers should always purchase gift cards from reputable sources. They should also be wary of any offers that seem too good to be true.

Apple gift card settlement
Image Source: cardvest

Apple gift cards can be used to purchase Apple products, apps, music, and other products through Apple’s various online stores. However, Apple customers should be aware of gift card scams. Fraudsters are sometimes requesting codes from Apple Gift Cards, App Store & iTunes Gift Cards, or Apple Store Gift Cards. They will ask people to make payments over the phone for things such as taxes, hospital bills, bail money, debt collection, and utility bills. Apple Gift Cards and App Store & iTunes Gift Cards can be used only to purchase goods and services from Apple. If you believe you’re the victim of a scam involving Apple Gift Cards, App Store & iTunes Gift Cards, or Apple Store Gift Cards, you can call Apple at 800-275-2273 (U.S.) and say “gift cards” when prompted.

Conclusion

Apple’s $1.8 million settlement of the class-action lawsuit over its gift cards is a reminder that companies need to take the security of their products seriously. The settlement provides compensation for customers who were affected by the alleged fraud. It also sends a message to Apple that it needs to do more to protect its customers. Customers should always be vigilant when purchasing gift cards. They should also be wary of any offers that seem too good to be true. What do you think about Apple’s decision to settle its users who fell into a gift card scam? Let us know your thoughts in the comment section below

Disclaimer: We may be compensated by some of the companies whose products we talk about, but our articles and reviews are always our honest opinions. For more details, you can check out our editorial guidelines and learn about how we use affiliate links.

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