Tuesday, October 2, 2007

In This Day of Price Gouging, Apple Sued by Dongmei Li For Cutting IPhone Price


Dongmei Li of New York woman is angry because Apple cut the price of the iPhone by $200. As a consequence of that anger, she's filed a lawsuit seeking $1 million in damages. Ms. Li claims Apple violated price discrimination laws when it slashed the price of the 8-gigabyte iPhone from $599 to $399 since June. (Apple lowered the iPhone 's price on Sept. 5.) Early customers who paid full price didn't expect a reduction so soon. Apple issued an apology and refunded the $200 difference for those who bought the phone within 14 days of the price reduction. In addition, those who purchased the higher-priced phone before the 14 day grace period were offered a $100 credit at Apple stores. Li's lawsuit was filed on Sept. 24 in the U.S. District Court, Eastern District of New York. Li purchased a 4GB iPhone for $499 (which Apple no longer sells). She alleged that owners of the 4GB model were given less favorable terms than purchasers of the 8GB model. The lawsuit also named AT&T, Inc who is the exclusive wireless provider in the U.S. for the iPhone. She alleged the companies' required two-year service contract for the iPhone constituted unfair business practices.


While Legal Pub tends to be critical of cell phones and those associated with them (See : September 21, 2007 Can Your Hear Me Now? No? Perhaps My Lawyer Can Speak Up to Account For Your Cell Phone Hearing Loss! and June 7, 2007 Cell Phones Kill! Wrongful Death Suit Around the Corner For Drowning in Sewer? on this one, Apple, Inc. seems to have done a good thing by slashing prices and making the IPhone more compatible with people's budgets.

8 comments:

mary said...

It is actually a cool phone. It was just too expensive initially.

I guess they still have some program issues but for the average user, it is a good buy at $499.


Mary

ralph said...

I think at $499 it is still a rip off. No phone is worth that. Why I remember using a rotary phone most of my life. Then came the touch tone. The idea of mobile bag phones, I figured would never catch on...

Next thing you know, they have phones that fit in your pocket and are smarter than the whole family put together.

Save your money and carry your photos in your wallet.

Ralph

Anonymous said...

Too many darn distractions. I agree with you Ralph, let us go back to some of the old ways.

Morris

Ron said...

I think Apple is OK on this one. Maybe they are just trying to take advantage of Apple's new general counsel or something. Anyway, I am not familiar with this alleged law cited. I also doubt they will be liable for the "lock up" issues, but will probably face some nuisance suits like this one.

dollar bill said...

Apple is aggressively marketing the IPhone. AT&T as exclusive providers is flourishing. A few minor lawsuits are but pimples on the corporate financial statement. This is all about money folks.

Dollar Bill

Anonymous said...

Did Apple sponsor the blog for the week? Nicest thing you have said about cell phones in a while!


Princess

Anonymous said...

Frivolous lawsuit like the one against the dry cleaners!

Anonymous said...

Ring, ring, Hello? You have been ripped off. Have a nice day!