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.