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News
Apple Accused of iTunes Gift Card Fraud
Friday, June 26th, 2009 at 8:13 AM - by Jeff Gamet
Apple has been hit with a lawsuit alleging the company's iTunes gift cards are fraudulent because they advertise 99¢ songs when some actually cost $1.29. The suit was filed by an Illinois couple claiming the gift cards falsely represent the number of songs that can be purchased thanks to wording that says "songs are 99¢."
According to the couple's law suit, Apple "knowingly and fraudulently misrepresented, concealed, omitted, and/or suppressed the cost to purchase individual songs from its iTunes internet Web site."
Apple does sell many songs at the iTunes Store for 99¢. After after April 7, 2009, however, the company began selling tracks on a sliding price scale scheme, making some tracks cost more than a dollar and others a little as 69¢. The suit seems to focus on the April date without acknowledging the fact that Apple sold higher quality recordings at $1.29, known as iTunes Plus tracks, before that.
iTunes pre-paid music cards
None of the iTunes cards TMO checked included any verbiage stating songs cost 99¢. One $15 card said "iTunes Music Card," and another card simply stated "$10 Gift Card." Since not all iTunes music store pre-paid cards include the same text, many iTunes Store shoppers may have made pre-paid card purchases without seeing the 99¢ song text.
Pre-paid cards for the iTunes Store can be used for more than music, too, regardless of whether or not songs cost 99¢. The cards can be used to purchase any content at the store, including videos, TV shows and movies, iPod games, and iPhone and iPod touch apps -- many of which cost well above 99¢.
The couple is hoping to convince the court to grant the suit class action status, and also wants damages to the tune of 30¢ for each song purchased at $1.29 with cards that include the 99¢ price reference, attorney's fees, and damages.
[Thanks to Ars Technica for the heads up.]
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