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Consumers Sue Apple Over Alleged Unfair Business Practices

Apple Inc. is being sued by consumers over problems with its latest iPhone. The iPhone 4 was released June 24 and consumers soon complained that calls were dropped or reception was weakened when users placed a palm over the lower left corner of the device. Apple has acknowledged the glitch and recommends that owners of iPhones buy a case to cover the area and solve the problem. Apple sells its own case called a “bumper” in six colors for $29. The consumers who have filed lawsuits claim that Apple engaged in unfair business practices and false and misleading advertising by releasing the iPhone 4 when they likely knew of the problem.

A New Jersey resident and a Massachusetts resident have filed separate complaints in federal court in San Francisco. They each are seeking class-action status in order to represent others who have purchased the iPhone 4. The Massachusetts resident claims in his lawsuit that Apple engaged in misrepresentation and fraud by releasing the latest product without disclosing the defect to consumers. He has asked that Apple be ordered to pay for customers’ bumpers, particularly for those customers who pre-ordered the new iPhone.

A third lawsuit was filed in Maryland by two people who claim that Apple and AT&T “actively suppressed and concealed the fact that the iPhone 4 could not be held in a manner consistent with the normal usage of wireless communication devices.” They are seeking a jury trial and unspecified damages.

 

Source:

Apple Is Sued Over New IPhone Reception by Consumers (Bloomberg Businessweek)

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