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Details on Apple reseller lawsuit emerge

updated 03:50 am EDT, Wed June 16, 2004

Apple reseller lawsuit

TellOnApple.org has posted a copy of its filed by MacAdam and Tom Santos on June 4th, 2004 in Santa Clara Superior Court and co-founder Thomas Armes told MacNN that he expects "to be in court on June 22nd for a case management conference and hope the judge will be setting a date for trial soon." TellOnApple.org was created by a group of former Apple Authorized Resellers as a "means to document and share any unethical or illegal business practices of Apple," saying that its "ultimate goal is to change Apple for the better." The complaint asks for more than $70,000 in unpaid monies owed by Apple as well as $7.5 million in damages for allegations of breach of contract, fraud, negligent misrepresentation, false advertising, violations of the Song-Beverly Consumer Warranty Act, trade libel, defamation, and more.




by MacNN Staff

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  1. Paul Huang

    Joined: Dec 1969

    0

    fradulent

    Mac Adam conducted fradulent activities against its customers. It deserves to rot in h***. Poetic justice.

  1. flask

    Joined: Dec 1969

    0

    rehash

    Every few months we get to hear MacAdam's sob story again. Perhaps Apple Resellers could try having a little courtesy for their customers and a little better service before they go blaming Apple for all their problems. It's no surprise that people go straight to the Apple Store when Resellers are charging an arm and a leg for simple repairs and have a markup on everything in the store.

  1. Authorized Apple Tech

    Joined: Dec 1969

    0

    Embarassment

    Of course this is an embarrassment to the other resellers. But the embarrassment is that it had to go this far to get the problem fixed.

  1. ima_pseudonym

    Joined: Dec 1969

    0

    Hope apple gets fined

    Wouldn't trade any of my macs for anything, but Apple's actions toward their resellers have been Microsoftian. Even if some of the resellers who got screwed have screwed others, that doesn't make Apple's tactics right. I hope Apple gets hit for the full amount of damages.

  1. testudo

    Joined: Dec 1969

    0

    Please!

    As said:
    "ultimate goal is to change Apple for the better."

    Actually, their ultimate goal is to try to get money from Apple, the more the better. Their second goal is not necessarily change Apple for the better, but to change Apple for their betterment.

    And maybe if all these resellers had been doing their part to promote and push Apple products, Apple wouldn't have had to do their own retail stores.

    Oh, and they are reaching in this thing too. Look halfway through. They're actually complaining that Apple has, get this, a screen on initial startup that requests user information, and, that's right, uses this information for PROMOTIONAL purposes! I can't believe it. I thought all those questions about my s** and how many people in my business was all important stuff just to make sure they knew exactly who they were talking to when I called up with a problem. "Oh, Mr. Johnson, how are the kids these days? Do any fishing lately? Wow, 20 pounds, that's pretty good...."

  1. diskgolfking

    Joined: Dec 1969

    0

    Strange

    I find it strange that resellers, whom Apple can simly chose to no longer do business with, would sue the company. Even if Apple loses, the resellers lose. Lawyers win, though (yay!!)

  1. ima_pseudonym

    Joined: Dec 1969

    0

    Honesty please

    "Oh, and they are reaching in this thing too. Look halfway through. They're actually complaining that Apple has, get this, a screen on initial startup that requests user information, and, that's right, uses this information for PROMOTIONAL purposes! "

    Of course there is nothing wrong with this, assuming Apple never promised the resellers that they would not try to steal their established customers. Oh wait. Apple did make that promise, even while they distributing memo's outlining their plans to - get this - steal the resellers' established customers.

    Apple was dishonest. They should be fined.

    Anybody with Apple stock should also be concerned about the allegations that Apple has been cooking the books for its retail stores - calculating profits by claiming that the stores pay the same prices for products that other stores do - when there are invoices that show that the apple retail stores pay only a fraction of what other resellers pay.

    All anybody wanted was Apple to not lie. If Apple wanted to directly compete with resellers, they should have simply said so up front instead of lying about it.

    I want the company that makes the computers I prefer to act relatively honorably. Anybody who doesn't want the same thing might as well buy Microshaft.

  1. diskgolfking

    Joined: Dec 1969

    0

    Honesty, hah!

    "If Apple wanted to directly compete with resellers, they should have simply said so up front instead of lying about it."

    Why? What was there to gain? The only people who care about this are a few Mac diehards on the internet.

  1. testudo

    Joined: Dec 1969

    0

    Re: Honesty


    Of course there is nothing wrong with this, assuming Apple never promised the resellers that they would not try to steal their established customers. Oh wait. Apple did make that promise, even while they distributing memo's outlining their plans to - get this - steal the resellers' established customers.


    How are they supposed to know the info entered by users on registration is from users who used a reseller, without having a customer list? Is Apple supposed to have a big notice on their screens that say "Wait, if you've purchased your mac through an Authorized reseller, then don't enter ANY information as it might be used for promotional purposes and we wouldn't want to even think of sending you even an email with our latest Apple hardware info because it might make your representative mad?"

    Anybody with Apple stock should also be concerned about the allegations that Apple has been cooking the books for its retail stores - calculating profits by claiming that the stores pay the same prices for products that other stores do - when there are invoices that show that the apple retail stores pay only a fraction of what other resellers pay.

    Except there's also been the mnention that Apple CAN'T charge their own companies the same they do resellers, because its against the law (selling stuff within a company for a price greater than cost could be seen as an attempt to hide money somewhere gains and losses along the line). Selling them for less could prop up the Apple store area, but it hurts Apple in their own revenue numbers from the factory.

  1. z10n

    Joined: Dec 1969

    0

    Wow

    Sad to see the apple apolgists come out of the woodwork and slander anybody who dare accuse their beloved company of any wrongdoing.

    "It's no surprise that people go straight to the Apple Store when Resellers are charging an arm and a leg for simple repairs and have a markup on everything in the store."

    No s***, really? Could that be because... gasp... apple has unfairly given their own stores massive discounts? Or how apple has marketed directly to Reseller customers, giving them discounts if they come to an Apple Store and stealing Reseller business? Or how product always arrives at the Apple Stores first?

    Wake up people. Yes, some of the reason why Resellers have done poorly is their own fault. But there is a HUGE amount of fault against Apple for delebrately and repeatedly bending the rules in an attempt to make Resellers look bad and drive away their customers. If I was a Reseller, I would be just as pissed off as these guys are. What apple did was not only ethically wrong, it was illegal.

    "The only people who care about this are a few Mac diehards on the internet."

    What about the people who don't live near an Apple Store? All the Resellers are going out of business.

    Apple should be about CREATING friends, not killing them off if they "taint the apple brand" because they don't have extremely large apple logos outside their showrooms. How stupid is that? Here apple has like zero marketshare, and they are going to go and stab the few people who love them and want them to succeed in the back. EXTREMELY short-sighted way to do business.

    Seriously, when apple is finally left with no friends, then you might as well kiss the mac platform goodby. Apple might THINK they can do everything on their own, but the reality is that they can't.

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