MacRoberts Technology Media & Communications e-update 07/12/09

OFT CUTS TO THE CORE OF APPLE'S TERMS OF BUSINESS

The Office of Fair Trading (OFT) has announced that Apple Inc, the software and hardware giant, has agreed to change its contractual terms and conditions to make them fairer for consumers.

The OFT was concerned that Apple's UK terms and conditions were in breach of the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs), and did not fully comply with the EU's Distance Selling Regulations. In particular, Apple must ensure that:

• its terms and conditions are written in sufficiently plain and clear English (provisions which disadvantage the consumer by containing too much legal jargon may be challengeable under the UTCCRs);
• the terms do not seek to exclude liability for faulty or mis-described goods. This could act as a deterrent for people who would otherwise have a valid claim against Apple, and therefore the provision would be an unfair term under the UTCCRs; and that
• the terms rule out the possibility of Apple altering the price of goods or the goods themselves after an agreement had been entered into with a consumer.

The terms and conditions relate to products and services purchased from Apple and iTunes stores and software downloaded from the web. After "constructive" discussions with Apple, the OFT issued a statement, which emphasised that:
"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."

The OFT regularly investigates companies whose terms and conditions fall short of the standards imposed by EU and UK consumer laws. Many businesses are simply not aware of their rights and obligations under these laws, and should seek legal advice before drafting terms and conditions. MacRoberts offers comprehensive guidance on e-commerce and other consumer law matters.

For further information please contact David Flint or Valerie Surgenor on 0141 332 9988.

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