Sunday, March 26, 2006

Apple Robs its Customers: The iPod Settlement Scam

The empty battery meter on my 3rd generation iPod mocked my foolhardy $500 purchase. What was once a state of the art portable music device had been reduced to a $500 paperweight, and I was staring at a nearly $100 battery replacement fee from Apple. Fortunately, last August, consumers around the world found strength in numbers, banned together, and turned to Girard Gibbs law firm to represent us in a class action suit.

I filled out my paperwork, submitted everything with time to spare.

The class action suit was quickly ruled in favor of the consumers. Then, we waited.

Months (and several iterations of iPod product later) I was still stuck with a defunct 3G iPod. A trip to the local Apple Store merely redirected me back to the law firms settlement website. Turns out Apple filed an appeal (which they later abandoned), pushing back the whole process. Naturally, courts again ruled in our favor.

Months again passed, now half a year past the original filing date of the case. Several phone calls to Gerard Gibbs law firm resulted in mixed promises: first November, then mid-January, followed by mid-February. During this time, I have been unable to pursue other less expensive 3rd party methods of getting this iPod up and running as it would void the warranty. With several missed deadlines and broken promises prompted me to put all communications in writing. I emailed them requesting a definitive time table, to which I received the following response:

Dear Paul, Thank you for contacting us about the iPod Settlement. The Court granted final approval of the settlement and entered a final judgment on August 25, 2005. On October 24, 2005, two individuals filed appeals from the Court's order granting final approval of the settlement. As a result of the appeals, Apple and the Claims Administrator could not begin the process of fulfilling claims.

On December 20, 2005, the appeals were abandoned. The Claims Administrator has begun the process of fulfilling claims and notifying claimants of any deficiencies. Class members will be mailed instructions for how to obtain their benefits under the settlement. The Claims Administrator has provided us with the following timeframe for the distribution of the settlement benefits:

February 17, 2006- The Claims Administrator will mail $25 checks to Class Members who purchased the AppleCare Protection Plan and obtained battery repair/replacement under the AppleCare Protection Plan.
Beginning of March 2006- For Class members who own a First or Second Generation iPod and who selected the $25 cash payment, the Claims Administrator will begin mailing $25 checks to those who submitted valid claims.

Middle of March 2006- For Class members who own a Third Generation iPod and who selected battery/iPod replacement, the Claims Administrator will begin mailing letters containing instructions for battery/iPod replacement to those who submitted valid claims.

Middle of March 2006- For Class members who own a First, Second or Third Generation iPod and who selected a $50 store credit, the Claims Administrator will begin mailing letters with certificate codes for the $50 store credit to those who submitted valid claims.

Around March 17, 2006- The Claims Administrator will begin sending deficiency letters to Class members who submitted an incomplete/incorrect claim.

End of March 2006- The Claims Administrator will send denial letters to those individuals who do not fit the class definition or who submitted their claims past the claims deadline.

We sincerely appreciate your patience during the claims fulfilling process. We can assure you that the Claims Administrator is working diligently to process and fulfill the approximately 125,000 claims it has received to date. To expedite the settlement distribution process, please respond to any notices of deficiency you may receive right away. You will have 60 days to make changes to your claim form to remedy any deficiencies.


Note that these dates, which had already been moved back repeatedly, have again been moved back according to the most recent updates on Girard's website. It looks like I'll be receiving my settlement on the 5th of Never at this rate.

I have at this point received no further correspondence from the law firm or from Apple regarding my BROKEN iPod, which has been utterly defunct for over a year now. An inquiry with Apple as to the deficiency of the settlement proceedings, and a direct request for information beyond what the law firm could offer was essentially blow off by customer support with a link to: you guessed it - The iPod settlement website.

I'm sure I'm not the only one who is beginning to smell a scam. For a company which has endeared itself so well to the American public, such poorly handled customer service is both an embarrassment and a threat to their precious brand image. Apple has a lot to lose from the discontent of customers left in the dust.

If you are still waiting for your settlement, please make your voice heard.


A brief Google Search reveals that Girard Gibbs Law Firm may have mismanaged other settlement proceedings:

http://freelancerights.blogspot.com/2005/05/girard-gibbs-de-bartolomeo.html

You'll notice that in this case, like the iPod Settlement case, "all questions must be directed to the "official" settlement website."

-----Original Message-----
From: Paul --
Sent: Tuesday, February 21, 2006 3:57 PM
To: Andrea --; info@apple.com
Subject: Re: Settlement Proceedings


This is truly beginning to feel like a scam. I have been stuck with a
defunct $500 product for over a year now. I neglected to pursue other
extended warrantee options for this settlement, and have held off on 3rd
party repairs so as to not void the warrantee. This email suggests
distribution in NOVEMBER 2005. 3 months later, I have no check or repair
options at my disposal.


Please help me to understand why several iterations of iPod product
later, I still cannot listen to my music. I made a lot of sacrifices to
afford an expensive product, which is now an expensive paperweight.


Paul J---


Related Links:
Digg This Post
"Official" iPod Settlement Website
Gerard Gibbs Website
Another Gerard Gibbs complaint