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Apple Inc. (AAPL) Facing Class Action Lawsuit For Falsely Advertising iPhone And iPad Storage Capacity

Apple Inc. (NASDAQ:AAPL) is no stranger to law suits and legal problems. But the company has to face a really strange class action lawsuit. Apple Inc. (NASDAQ:AAPL) is accused of falsely advertising the iPhone storage capacity. Two Florida men are suing Apple Inc. (NASDAQ:AAPL) regarding this matter for $5 million. Legal Analyst Wendy Patrick and Charles Griffin Intelligence Founder Philip Segal discussed on Fox Business about the class action lawsuit filed against Apple Inc. (NASDAQ:AAPL).

Apple, is AAPL a good stock to buy, Niel Cybart, iPhone 6,

The two Florida men who filed the class action lawsuit against Apple Inc. (NASDAQ:AAPL) claim that the company had falsely advertised the iPhones and iPads storage capacity. For the sake of discussion Wendy Patrick took the plaintiff side and Philip Segal defended Apple Inc. (NASDAQ:AAPL). The new iOS8 is very heavy and consume nearly 25% of the storage space of an iPhone, which was not informed during the sales and advertisement of iPhones. Patrick thinks that Apple Inc. (NASDAQ:AAPL) has not kept the promise that it has made to consumers in storage space of iPhones, which is the most important thing for the consumers.

Apple Inc. (NASDAQ:AAPL) though provides extra storage for the consumers through iCloud, but that storage space is charged though. Patrick quoted an example to explain the situation better.

“[…] False advertising not just about some tangential aspect of the iPhone, but what matter the most to consumer. Storage. iPhone users need their space and what Apple basically did is didn’t tell them, allow them to make the decision that they would have up to 25% less storage that was advertised. It’s like selling a box of 40 cookies and you open the box, there is only 30 cookies and an option to buy the extra 10, they call that iCloud storage,” Patrick said.

On the other hand, Segal pointed out that the people who use the computers are well aware of the situation that if they buy a PC with 1TB capacity, they might get 9-10% lower storage space, remaining being used by the OS. So he thinks that Apple Inc. (NASDAQ:AAPL) claiming the full storage including the OS should not come as a surprise to the users as they are well aware of it.

Patrick said that Apple Inc. (NASDAQ:AAPL) also pushes its consumers to upgrade their phones and software every now and then and the users does it without realizing that it consumes some additional storage space. She thinks that now-a-days people use phones not just for calls, but also as video cameras and even mini-computers. She mentioned that Apple Inc. (NASDAQ:AAPL) users should be given the choice of whether to upgrade or not and in case they opt to upgrade, they should be well informed that it would consume some storage space. She countered Segal point that consumers might expect some storage space taken for OS, but she mentioned that no one would expect it to be around 25%.

Segal mentioned that consumers, who bought a 16 GB iPhone, are getting only 13 GB storage space, and he feels that this 3 GB is not sufficient enough for a class action lawsuit.

Patrick thinks that this case would end up with either a new phones, monetary damage or may be a combination of both

Segal thinks that this would end up with just the lawyer’s fees being paid without any real remedy for people.

Disclosure: None

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