Apple Hit with Class Action Lawsuit over iPhone Upgrade Program Catastrophe

Members of the iPhone Upgrade Program have been grumbling over how Apple handled pre-orders of the iPhone 7 and iPhone 7 Plus, which commenced last week kicking off a feeding frenzy. iPhone Upgrade customers found that when they tried to pre-order the latest Apple iPhone, they were forced to reserve a device with a brick-and-mortar Apple store, rather than online or with third-party retailers.

Furthermore, many Apple stores did not have sufficient stock to process their orders, leaving customers with iPhone models and colors other than their first choice. In some instance, they were told to check again later for additional inventory or advised to purchase new iPhones when they become officially available, according to 9to5Mac.

Block & Leviton, a Boston-based law firm, announced that it has filed a class action lawsuit against Apple in the U.S. District Court in Northern California. The lawsuit accuses Apple of prioritizing new customers over members of its iPhone Upgrade Program, ostensibly because Upgrade Program members are already on the hook for monthly payments to Apple and are already committed to purchasing the latest iPhone.

The iPhone Upgrade Program allows users to make monthly payments in exchange for the ability to upgrade their device to the newest model every year– perfect for hot ticket items like the enormously popular iPhone 7. The program actually charges users an extra fee for guaranteed access to the latest iPhones, making the Apple smartphones even more expensive than their retail cost. This year, however, you had a better chance of snagging an iPhone 7 if you were not part of the iPhone Upgrade Program. You also had a better chance of successfully pre-ordering an iPhone 7 through your wireless carrier’s upgrade program than through Apple’s.

The lawsuit is calling on Apple to reimburse program members for any extra fees they paid while waiting for the newest iPhones, to make all inventory including online stores accessible to the program, and to make sure that program members are eligible to buy the iPhone 7 on launch day.

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