Apple Faces Record $150,000 Fine in New Jersey for Retail Pricing Violations
Apple Inc. has agreed to pay a $150,000 civil penalty to the state of New Jersey following an investigation that revealed repeated violations of the state’s Merchandise Pricing Act in its retail stores. This settlement, announced by Attorney General Matthew J. Platkin, marks the largest penalty ever imposed under this specific statute.
The investigation, conducted by the New Jersey Division of Consumer Affairs, involved reinspections of 11 Apple Stores across the state. Inspectors discovered that these stores failed to display prices clearly on various products, including iPhones, iPads, MacBooks, Apple Watches, and accessories such as charging cables and cases. Additionally, several stores did not conspicuously post refund policies as required by the state’s Consumer Fraud Act.
This is not the first time Apple has faced scrutiny over its in-store pricing practices in New Jersey. In 2017, the company entered into a consent order with the state, agreeing to ensure that pricing information was continuously available on or near displayed products. The recent findings indicate that Apple did not adhere to this agreement, leading to the current penalty.
Attorney General Platkin emphasized the importance of transparent pricing, especially during times of economic uncertainty. At a time when prices are skyrocketing, consumers deserve to know what they’re paying for products on the shelves, Platkin stated. Once again, Apple has violated the law by failing to display the prices for products in their retail stores—keeping consumers in the dark.
The core issue lies in Apple’s preference for digital price displays, which often require customer interaction with devices to view pricing information. New Jersey’s consumer protection laws mandate that prices be plainly marked on or near merchandise, ensuring that consumers can easily access pricing without additional steps. The state’s Merchandise Pricing Act, established in 1996, requires clear and conspicuous price markings to protect consumers from potential confusion or deception.
Under the new consent order, Apple has committed to several compliance measures to prevent future violations:
– Clear Price Markings: Apple must ensure that all merchandise in New Jersey stores has the total selling price plainly marked by a stamp, tag, label, or sign affixed to the merchandise. Alternatively, the price must be apparent on the screen of the device itself upon limited interaction or located in close proximity to the merchandise.
– Immediate Price Visibility: The company is prohibited from requiring customers to interact with electronic devices to learn prices unless those prices appear immediately and conspicuously.
– Refund Policy Display: Apple must conspicuously post refund policies at store entrances, registers, or on the merchandise itself.
This settlement underscores the ongoing tension between innovative retail design and adherence to established consumer protection laws. Apple’s minimalist store aesthetics and reliance on digital interactions have clashed with regulations that prioritize straightforward and accessible pricing information for consumers.
The $150,000 penalty serves as a significant reminder to retailers about the importance of compliance with state laws designed to protect consumers. For Apple, this fine is a fraction of its vast revenues, but it highlights the necessity of aligning its retail practices with legal requirements to maintain consumer trust and avoid future penalties.
