Apple (iTunes) Gift Cards Class Action
Sotos LLP has launched a proposed class action against Apple Inc., Apple Value Services, LLC, and Apple Canada Inc. for their role in facilitating gift card scams against Canadians. The class action seeks to represent all Canadians who purchased one or more Apple Gift Cards, provided the redemption codes to people unknown to them who sought the codes under false pretenses, and were not refunded the value of the Apple Gift Cards by Apple, since January 1, 2016.
The case seeks compensation for breach of contract and the duty of good faith, negligence, and unfair and deceptive business practices in representing to victims of gift card scams that funds paid to scammers via Apple gift cards are virtually irrecoverable.
Apple has created a payment system that it knows is popular among scammers. Apple profits from these scams. While Apple tells victims that funds are generally irrecoverable, Apple has near complete knowledge of every transaction from the victim’s initial gift card purchase, to the ultimate recipient of these funds. The plaintiff alleges that the defendants breached the terms of their gift card agreements or acted in bad faith, were negligent, and have made false or misleading claims that violate consumer protection laws.