Apple Inc. has agreed to pay a $150,000 civil penalty and change its business practices following allegations of widespread merchandise pricing violations in its stores across New Jersey, according to an announcement from Attorney General Matthew J. Platkin.
The Division of Consumer Affairs reinspected 11 Apple stores that were previously subject to a 2017 consent order. That order required Apple to provide clear pricing information for products such as iPhones, iPads, MacBooks, and other electronic devices displayed on tables in its stores throughout the state. The earlier agreement was reached after concerns that Apple’s digital pricing system did not comply with consumer protection laws mandating prices be plainly marked near the merchandise.
During the most recent inspections, investigators found that all 11 stores had display tables missing required pricing information. They also found items like charging cables and audio devices being sold without visible price tags or signs, which is a violation of the New Jersey Consumer Fraud Act’s Merchandise Pricing Act. Several locations also failed to clearly post their refund policies as required by law.
“At a time when prices are skyrocketing, consumers deserve to know what they’re paying for products on the shelves. Once again, Apple has violated the law by failing to display the prices for products in their retail stores—keeping consumers in the dark,” said Attorney General Matthew J. Platkin. “It’s bad enough when companies violate the law once. It’s even worse when they are held accountable for violating consumers’ rights and then engage in the same unlawful conduct again. There is no excuse for Apple’s repeated misconduct here, and consumers deserve better. We’ll stand up for them every time.”
The $150,000 penalty is reportedly the largest settlement under New Jersey’s Merchandise Pricing Act to date.
Under terms of a new consent order with state authorities, Apple must ensure it does not advertise or sell merchandise unless prices are clearly marked by stamp, tag, label or sign; apparent on device screens upon limited interaction; or located close enough so customers can independently see them without staff assistance. The company is also prohibited from requiring customers to interact with devices solely to find out prices unless those prices are easily visible after minimal interaction with clear display requirements met.
Additionally, refund policies must now be posted either directly on merchandise or at points easily visible at registers or store entrances.
The investigation was conducted by Investigators Brian Penn, Roger Hines, and Murat Botas under Chief Investigator Edward George’s supervision. Legal representation came from Deputy Attorneys General Sara J. Koste and Cathleen O’Donnell within the Division of Law’s Consumer Fraud Prosecution Section.
Consumers who believe they have experienced unfair business practices can file complaints online with the State Division of Consumer Affairs or call designated hotlines.
The New Jersey Attorney General Matthew Platkin oversees legal enforcement and consumer protection efforts across all counties in New Jersey through various divisions focused on public safety and legal support statewide.
