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Apple agrees to improve terms and conditions

136/09    27 November 2009

Apple Inc has agreed to change their terms and conditions to make them clearer and fairer for consumers following concerns raised by the OFT.

Apple's contracts set out terms which apply to consumers who buy from Apple and iTunes stores and download software from the web. The OFT identified terms in the agreements which raised concerns under the Unfair Terms in Consumer Contracts Regulation 1999 (UTCCRs). Following constructive discussions with the OFT, Apple has agreed to revise its standard conditions to ensure these:

• do not exclude liability for faulty or mis-described goods
• are consistent with consumer rights under the Distance Selling Regulations
• are drafted in plain or intelligible language
• do not potentially allow changes to be made to products and prices after an agreement is made.

Jason Freeman, Legal Director, OFT Consumer Markets Group, said:

'The contract or terms of use between a company and a consumer, whether they are found online or on paper, must be clear, fair and easy to understand. In particular, it is important that consumers are given clear and accurate information about their consumer rights in case things go wrong. We have worked closely with Apple to secure these changes and we believe they will improve confidence and clarity for consumers.'

NOTES

1. If you are unsure of your rights, Consumer Direct is the OFT managed advice service offering information and advice on consumer issues. For information or advice contact 08454 04 05 06 or see www.consumerdirect.gov.uk.

2. The Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) protect consumers against unfair standard terms in contracts they make with traders. The OFT, together with certain other bodies, can take legal action to prevent the use of such terms. The UTCCRs can protect consumers from terms that reduce their statutory or common law rights and from terms that seek to impose unfair burdens on the consumer over and above the obligations of ordinary rules of law.

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