Apple to pay $150,000, change store pricing practices to settle N.J. allegations, attorney general says

TRENTON, N.J. — Apple Inc. has agreed to pay a $150,000 civil penalty and change its business practices to resolve allegations that the company repeatedly failed to properly display prices on merchandise in Apple stores across New Jersey, Attorney General Matthew J. Platkin announced Thursday.

State officials said the allegations stem from the Division of Consumer Affairs’ reinspection of 11 Apple stores that were subject to a 2017 consent order requiring continuously available pricing information for devices displayed on in-store tables, including iPhones, iPads, MacBooks and Apple Watches.

Apple entered into the 2017 consent order to settle allegations that its in-store digital pricing system — which provides price information through apps and notifications launched from the devices themselves — violated consumer protection laws requiring prices to be plainly marked with a stamp, label or sign on or near merchandise, officials said.

In every store reinspected, investigators found display tables that lacked the pricing information required by the 2017 order, officials said. Investigators also found items such as charging cables, protective cases and audio devices offered for sale without a selling price on or near the product, as required by the New Jersey Consumer Fraud Act’s Merchandise Pricing Act, officials said. Several stores also failed to conspicuously post refund policies, which officials said is also required under the law.

“At a time when prices are skyrocketing, consumers deserve to know what they’re paying for products on the shelves. Once again, Apple has violated the law by failing to display the prices for products in their retail stores—keeping consumers in the dark,” said Attorney General Matthew J. Platkin. “It’s bad enough when companies violate the law once. It’s even worse when they are held accountable for violating consumers’ rights and then engage in the same unlawful conduct again. There is no excuse for Apple’s repeated misconduct here, and consumers deserve better. We’ll stand up for them every time.”

Officials said the $150,000 penalty is the Division of Consumer Affairs’ largest settlement under the Merchandise Pricing Act. The agreement is memorialized in a consent order requiring Apple to change its practices, including ensuring merchandise is not advertised, offered for sale or sold in Apple stores unless the total selling price is plainly marked by a stamp, tag, label or sign affixed to the merchandise; is apparent on the screen of the device upon limited interaction; or is located in close proximity to where the consumer finds the merchandise so customers can determine the price without needing help from a salesperson.

The order also bars Apple from requiring consumers to interact with an electronic device to determine the selling price unless the total selling price is apparent upon limited interaction and displayed clearly and conspicuously, officials said. Apple is also required to clearly and conspicuously post refund policies for all merchandise, including by posting them on the merchandise, at registers or points of sale, where visible from the cash register, or at store entrances used by the public, officials said.

The reinspections were conducted by investigators Brian Penn, Roger Hines and Murat Botas under the supervision of Chief Investigator Edward George, officials said. The state was represented by Deputy Attorneys General Sara J. Koste and Cathleen O’Donnell under supervisors within the Division of Law, officials said.

Consumers who believe they have been cheated or scammed or suspect other consumer abuse can file a complaint with the Division of Consumer Affairs online or by calling 1-800-242-5846 (toll-free within New Jersey) or 973-504-6200.