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Special cautions are required as consumer complaints are on the rise against after-sales policy for Apple’s iPhone.
Number of consumer complaints lodged to Korea Consumer Agency (President: Kim, Young-Seen, www.kca.go.kr) and 1372 Consumer Counseling Center against iPhone skyrocketed to 491 cases in 2Q10 from 94 and 299 for 4Q09 and 1Q10, respectively. And, poor product quality and after-sales service were the leading causes (over half) of the complaints.
The US company applies not the Criteria for the Resolution of Consumer Disputes notified by the Fair Trade Commission but its own unique warranty policy to its iPhone. For example, in the event of defect occurrence, the company concerned does not provide repair service for the cell phone but provides a ‘refurbished’ phone (meaning the phone was returned during after-sales service and re-assembled). Even when an iPhone is broken or damaged due to careless use by a user, it is impossible for the user to get that part of his or her iPhone repaired. Instead, the user should pay W290,400 ~ W831,600 (for 32G) for a refurbished phone according to the damage extent.
Even during warranty period, Apple divides the damage extent of the cell phone to three of ‘slight damage, repairable damage, and serious damage’ and provides free after-sales service (refurbished iPhone) only for the slight damage case. Moreover, despite existing manufacturing defects, an iPhone user should pay for his or her ‘refurbished phone’ if the damage extent does not meet the Company’s strict guarantee criteria.
Meanwhile, KCA proposed a settlement for consumer redress case against iPhone’s after-sales service policy to the Consumer Dispute Settlement Commission (CDSC). Also, the Agency made it known that consumers are advised of a thorough confirmation process for not only design, functions, and price but also after-sales service criteria, when it comes to purchasing a smart phone.
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