Version: 2008

Comments on: Apple sued over iTunes gift cards

An Illinois couple is suing because Apple advertises its iTunes gift cards as selling songs for 99 cents a pop. However, some songs actually cost $1.29.

Add a Comment (Log in or register) Showing 2 of 4 pages (147 Comments)
by tech_crazy June 26, 2009 10:54 AM PDT
I am neither an Apple fan or outright hater. But they are right in suing the company for changing the terms AFTER the cards were bought (and without the new terms/literature). At the previous rates, they could have bought ~66 songs. At the highest rate of 1.29, Apple owes them $20.14. If the song rates go up in the future, Apple would owe them and every similarly situated buyer the difference or a refund of the full amount. Ditto for prepaid phone cards with one rate advertised when you buy and something else later on.
Reply to this comment
by sciontcya June 26, 2009 11:00 AM PDT
They can still buy 99¢ songs.
Let me guess - you're an ambulance-chaser?
Must be.
by jstein1985 June 26, 2009 11:21 AM PDT
Actually, if you really want to do the math, $65 gets you 65.6565.... songs @ $.99 each. So if they want all $1.29 songs, then they are owed $.30 * 65.6565..., or $19.6969... Then they could round that up to $19.70, but since they apparently like to get very technical, they should be required to make change for that partial cent.
by billysive June 26, 2009 4:42 PM PDT
so companies are not allowed to raise their prices? What about if I bought someone a $20 Gap card thinking they would buy a $20 shirt - then a year later the price of the shirt went up.. then I can sue the Gap? They bought a $25 itunes card - good for $25 worth of purchases - not a 25.25 songs at 99 cents a piece card.....
by tzs108 June 27, 2009 12:47 PM PDT
@billysive:

Does your gap card state on the front that shirts are $20? I bet it does not.

Some Apple iTunes cards state right on the front that songs are $0.99. How do you know that's not the kind of card they bought?
by tech_crazy June 27, 2009 4:26 PM PDT
@sciontcya

Then I guess you must be a politician or a scumbag. Oh wait, they are the same!
by btr1389 June 28, 2009 4:57 PM PDT
I have an iTunes card from 2007 and it clearly states "Download $25 worth of entertainment...." No where on it does it say "download 25 songs with your $25 gift card" or anything. Plus going after apple legal with a petty case like this is like going into a gun fight with a paper clip (unless you're McGyver)
by doctorvik June 26, 2009 10:57 AM PDT
Yes - the court system has nothing better to do but listen to your BS about how you were robbed of 20 dollars -- people like this will be the downfall of this country and have already been the downfall of the medical system - These people should be ashamed of themselves.
Reply to this comment
by rrod182 June 26, 2009 11:06 AM PDT
I have Wendy's giftcard and they advertise 99 cent hamburgers, but when I got there some hamburgers are more then 99 cents. If you are lawyer please call me I think we have a class action case here.
Reply to this comment
by Lerianis3 June 29, 2009 7:59 AM PDT
They are not saying on there that ALL hamburgers are 99 cents, so your point goes out the window immediately, because Apple WAS stating that ALL songs were 99 cents on the cards.... contrary to what btr1389 says, I went and found a picture of said card online just now... it does say that ALL SONGS ARE 99 CENTS in black and white.
[CNET editor's note: Personal attack deleted.]
by Crosby4Life June 26, 2009 11:15 AM PDT
Even when all the songs on iTunes actually were 99 cents, you still couldn't buy 25 songs with a $25 gift card. Taxes are applied when you buy the songs, pushing the cost of a 99 cent song over $1, anyways.

That side, I'm among the group who thinks this is idiotic. By all means, punish the companies who are intentionally trying to mislead people, but this is a case of someone suing Apple over their inability to compensate for people without common sense. Another legal case that is making Charles Darwin roll in his grave.

Sadly, I have strong feeling that this was a calculated move by these people. They likely heard the rumors that Apple was going to increase prices, saw the advertisement claiming 25 songs for $25 dollars, and bought them knowing full well they'd make a lawsuit out of it.
Reply to this comment
by Sporlo June 27, 2009 2:48 PM PDT
That actually could be likely. I really want to know what people who do these things are like. Are they REALLY just idiots, or do they know full well what they're doing? I wonder what they tell their friends and what their friends think of them...

For someone to actually have the nerve to do something like this, it really does make you wonder whether they had the intention to do it all along.
by irishlad1994 June 26, 2009 11:26 AM PDT
I REALLY hate people like that. Its a huge waste of time to sue over a whopping $20. They have no life. The new pricing is stupid but, please, suing over it is a massive waste of time in the courts.
Reply to this comment
by Lerianis3 June 29, 2009 8:14 AM PDT
You are forgetting that this has the good possibility of becoming a CLASS ACTION LAWSUIT, in which case it would be a hell of a lot more than 20 dollars that this case would be about. Try increasing that 20 dollars by 500K people, and then you see how much money this could REALLY be about.
by One-Eared Gundark June 26, 2009 11:30 AM PDT
Daniel and Barbara Owens posses the "get rich quick" mentality so prevalent in the US these days. These types see the only way of getting ahead as either winning the lottery or winning a lawsuit. Then, upon winning either the lottery or a lawsuit, they quickly squander all they receive and wind up in exactly the same financial situation they were in before - or worse.

Of course, the lawyers always get paid, so they are more than happy to take silly cases like this.

This story makes me sick. I'll stop now before this turns into a sociopolitical rant.
Reply to this comment
by unknown unknown June 26, 2009 12:14 PM PDT
"Daniel and Barbara Owens posses the "get rich quick" mentality so prevalent in the US these days."

They're hardly going to get rich off this. Even if they win punitive damages it's probably not going to be more than $100 max in total winnings....unless the judge has the same mind set as the jurors in the Jammie Thomas trial. Everyone who files a lawsuit is not looking to get rich. If they were, surely they'd find something to sue over with a better pay out.
by pentest June 29, 2009 10:04 AM PDT
"If they were, surely they'd find something to sue over with a better pay out."

How do you know they don't have 5 other cases going on?

It happens, there are people like that.
by Daddio2009 June 26, 2009 11:53 AM PDT
Well - the great American sport of suing big companies for big bucks is alive and well in middle America! What a bunch of sleaze. When Apple wins the siut, Apple should counter sue and take everything from those money-grubbing miscreants.
Reply to this comment
by unknown unknown June 26, 2009 12:26 PM PDT
Big bucks, what article are you reading? What is Apple going to counter sue for? If they win they can only ask for REASONABLE attorney fees and court costs. Besides the couple isn't even asking for anything approaching big bucks just a refund of the 0.30$ difference on songs cost $1.29.
Considering the stakes are so low, I wouldn't be surprise if Apple just settled for a few free songs.
by pentest June 29, 2009 10:05 AM PDT
Reasonable attorneys fees will likely be $5000+.

I have a feeling that having to pay even that much is going to break these mental midgets.
by Daddio2009 June 26, 2009 11:55 AM PDT
well, other than the fact I cannot spel two gud... SUIT not siut! lol. Apologies to those educated amongst us.
Reply to this comment
by dhena81 June 26, 2009 12:06 PM PDT
Apple should just honor their contract on the card 65 songs of there choosing and 65 cents there is no case for damages IMO why should there be. Or maybe the record companies with there variable pricing should pay I was on iTunes last week sometime and almost all the popular songs are now 1.29 even if they have been released 10 years ago. I like to support apple but I'm not going to pay 1.29 for a song that is almost 10 years old. I find myself now shopping on amazon when before if I bought digital media I'd buy solely on iTunes.

I might consider paying 1.29 for 320 why don't the offer cd quality now days how many people have more than 60GB of music that they really listen to anyways not me. I have somewhere around 20GB and at least 10GB I don't even rotate in my prefered playlists.

Maybe octomom types can take a pay cut and pay for the difference.
Reply to this comment
by lusciatti June 26, 2009 12:06 PM PDT
Absolutely ridiculous lawsuit! Hope we hear how it turns out.
Reply to this comment
by Shaun822 June 26, 2009 12:42 PM PDT
This is ridiculous a gift card is totally different than the price structure of the store. If I buy someone a Best Buy gift card of $50 dollars because I saw a $49.99 game that doesn't mean they should honor it for a $59.99 game. The card clearly says $25 on it, not 25 songs. People need to get their heads out of the ***. 2 first year law students and a golden retriever ought to be able to get this tossed out of court on the first day.
Reply to this comment
by mrschaidt June 26, 2009 1:00 PM PDT
is the golden retriever there to get the jury's sympathy vote?
by Shaun822 June 26, 2009 2:45 PM PDT
I like it, it wasn't part of my original plan but I like it
by tzs108 June 27, 2009 12:49 PM PDT
Some Apple cards state both the total amount ($25) *AND* state that songs are $0.99. How do you know they don't have the cards that state the song price?
by Shaun822 June 28, 2009 1:19 PM PDT
Even if the card says that songs are .99 the card still doesn't say 25 songs. And the fine print on the cards says that price structure is subject to change with out notice, etc, etc. I got one of the cards for christmas a couple years ago, I suppose others could have the price structure on them, the one I had stated that it was good for the purchase of $25 of content on iTunes, didn't say a word about the pricing structure.
by rareskills June 26, 2009 1:13 PM PDT
haha people will sue over anything. You are buying a $25 gift card...you get $25 "WORTH" of songs. NOT 25 songs, not 30 songs, not X amount of songs....you get whatever $25 will buy you. If prices go up, prices go up...it shouldn't be cheaper or more expensive just because you have a gift card.

If i buy my son a Gap gift card for $25 in July, and prices go up in August, that does mean he should be entiltled to a more expensive shirt for a lower price....what the &*^*&^ people!!
Reply to this comment
by AppleProLeo June 26, 2009 1:41 PM PDT
People look at the picture of the gift card of the top right of the article, the answer's there.

The card CLEARLY states $25 NOT 25 (25.25) songs. The COCKroaches brought $x worth of iTunes gift cards and Apple gave them that $x worth of music. Apple did NOT sell them 10 songs or 15 songs which the COCKroaches could not then get because of the $1.29 price increase. So I don't know what entitles them to a guaranteed x number of songs per card comes from.

If however Apple put an number of songs in the card then maybe (BIG MAYBE) they might of had a case to sue Apple for that....err $4.5 or so back.

Secondly what about the .79 songs - do the COCKroaches owe Apple money for that?
Reply to this comment
by codynews June 26, 2009 2:25 PM PDT
damn, this is on page 2 and I already made a similar comment after reading all of page 1 comments :) SOrry to steal what you basically already said.
by tzs108 June 27, 2009 12:51 PM PDT
"People look at the picture of the gift card of the top right of the article, the answer's there"

How do you know that is the same kind of card they have? Apple also sold cards that stated the song price. Here's one: http://cache.daylife.com/imageserve/00xIdGN1mR9cA/340x.jpg

It clearly states that songs are 99c.
by pentest June 29, 2009 10:08 AM PDT
Yes, it does but what does it say on the back?

There is no defense for this stupid lawsuit.
by madcpa June 26, 2009 1:45 PM PDT
I think most people missed the point of the law suit. The gift card was being marketed as a card that is worth 25 songs. If the gift card doesn't stipulate that the number of songs is subject to change due to change in the pricing scheme, then you should be able to purchase exactly 25 songs. If the card wasn't marketed as a 25 song card valued at $25 dollars, then they'd have no case. I understand that the amounts are petty, but I believe what the couple is trying to establish is that Apple used deceptive marketing practices when it was selling the gift cards.
Here is an example that someone tried to use before: Let's say that you buy a $50 GAP card that states that it is good for 2 pairs of jeans (I know it doesn't). If the price of jeans goes up, should you still be able to buy 2 pair of jeans? That is why none of the retailers (except for Apple) advertise their gift cards in terms of quantity of merchandise that a consumer can buy.
Reply to this comment
by AppleProLeo June 26, 2009 3:31 PM PDT
Problem with your argument is iTunes gift cards are and always have been sold at a $ (currency) value not number of song(s) value.

Look at the picture on the article for confirmation.
by billysive June 26, 2009 4:47 PM PDT
Fair enough if that is how they marketed it - then they can still get 25 songs - they just have to chose from the ones that are still priced at 99cents or a combination of 69 cent 79cent and 1.29 songs
by chonnom June 26, 2009 2:09 PM PDT
PUNITIVE DAMAGES

Breach of contract is a tort offense and as such allows for punitive damages to be levied against the transgressor. What some of you are failing to realize is that Apple has much more to lose here than a few dollars. Punitive damages are just that, an award of a dollar amount to chastise a party from commiting further wrongful acts. One might state that a traffic ticket is a form of punitive damages. Calculation of such damages can be different depending on state statute and the precedence of similar cases tried. I can also forsee the attorney involved putting out a call for a class action suite that would compound the amount of "damages" being sought. Apple will probably offer some compensation to the aggrieved parties in way of additional credit as we saw recently with the Iphone activation troubles.
Reply to this comment
by terminalblue June 26, 2009 2:14 PM PDT
Illinois has odd consumer protection laws, they might actually win...but that doesnt mean that this suit isnt frivolous. I uppose that their argument is that there was old documentation in the store or something like that or printed on the card, these cards dont circulate to fast so they sit on the shelves for a few months.

Two outcomes are possible. If apple merchandises the gitfs cards, (provides signage or has a representative stock the merchandise) then they are liable. if the store creates and provides signage and stocks the cards, the store is responsible.

SOOO here is what happens. Apple prints the merchandise and signage and then the store stocks it to Apples guidelines (they pay for exclusive shelf space, its a very common practice). In numerous cases, the store may not have update their signage OR replaced their old Itunes gift cards when itunes changed prices....bu if apple didnt provide retailers and vendors wih new merchandise, then these people might have a case.
Reply to this comment
by codynews June 26, 2009 2:20 PM PDT
The card is for $25 (says so on the card) not 25 songs. Plus, 25 songs at $.99 would be only $24.75 anyway.

SO what if the cost of some songs went up to $1.29 or something like that... Some went DOWN to $.69. Maybe Apple should sue them if they buy only $.69 songs since they're getting more than the "25" they paid for (according to these scum sucking suing idiots)

Cody
Reply to this comment
by unknown unknown June 26, 2009 3:52 PM PDT
Their claiming that the advertised price at the time they bought the cards established a contract to sell them any song in the iTunes library for $0.99. If the card did indeed claim all songs $0.99 without making an exception for prices changes they may very well have a case.

"(according to these scum sucking suing idiots)"

That's real intelligent.
by pentest June 29, 2009 10:10 AM PDT
What is "intelligent" is defending these morons.

If this were the zune store you would be railing against the lawsuit, not that the zune store has any customers that can sue.

Regardless of who the suit is against, it is WRONG.
by Anf09 June 26, 2009 3:02 PM PDT
Soooo, basically they're suing because they're not getting "special pricing" on iTunes?! So what about the people like me who use their credit cards...should we sue the credit card companies and Apple for not letting us download all of our songs at .99? Seriously? Wow.
Reply to this comment
by unknown unknown June 26, 2009 4:00 PM PDT
"Soooo, basically they're suing because they're not getting "special pricing" on iTunes?! "

They're suing because they believe the purchase of the card established a contract to allow to purchase any song in the iTunes library for $0.99.


"So what about the people like me who use their credit cards...should we sue the credit card companies and Apple for not letting us download all of our songs at .99? Seriously? Wow."

That's not even a remotely similar situation. When some one buys a gift card the company they bought it from owes the holder products or services up to the value on the card. In this case there is dispute over whether the purchase of that card entitled them to get any songs in the iTunes library for $0.99. A credit card works the opposite way, you get products and services now and must pay for them later plus interest.
by ikramerica--2008 June 28, 2009 1:32 AM PDT
So should they be required to pay for the FREE songs too?

The gift cards are just that, a card that is denominated by dollar amount, not product value. After all, the songs have TAX too.

If the cards said 25 free songs, they'd have more of a case. But they say $25 dollars.

It's the same way that McDonalds sell gift coupons. They are dollar denominated, not "10 free hamburgers" and just because, at the time of purchase, the burger was $.99 doesn't mean that three years from now they still owe you 10 hamburgers.
by Lerianis3 June 29, 2009 9:33 AM PDT
Actually, ikramerica--2008, stop putting that lie out. SOME of the cards are denominated by dollar amount. Others are denominated by dollar amount AND have a thing on there saying that you can get 15, 20, etc. songs for this amount!
THAT is why these people are suing.
by pentest June 29, 2009 10:12 AM PDT
Leria,

Some of the cards say it the songs are 99 cents. None of them say you can buy X songs for $X because of sales taxes.

It is amusing how it is the brain dead MS defenders that are defending this stupid lawsuit.
by billysive June 26, 2009 4:39 PM PDT
So if I buy someone a gift card thinking they can get a shirt for the amount I have given them and then a year later the shirt costs more money - then I can sue the store? Come on - get a life Mr and Mrs Owens.
Reply to this comment
by Lerianis3 June 29, 2009 9:32 AM PDT
It was STATED ON THE CARD that you could get 15 songs for 15 dollars, 20 songs for 20 dollars, etc. THAT is the difference!
[CNET editor's note: Personal attack deleted.]
by pentest June 29, 2009 10:13 AM PDT
Leria,

You should take your advice and do some reading.
by Josh BSN June 26, 2009 5:24 PM PDT
And this is one reason why our justice system is ridiculous. If I were the judge, I would have apple pay them $20. That would be fair simple and could be handled by an online hearing taking all of 30 minutes at the most. This case is going to cost the couple oodles in lawyer fees and apple as well... The couple are probably some of the worlds laziest greedy pieces of dirt, hoping to make several hundred thousand dollars for all their suffering - which I assume in all truth is probably none at all.
Reply to this comment
by unknown unknown June 26, 2009 5:50 PM PDT
"The couple are probably some of the worlds laziest greedy pieces of dirt, hoping to make several hundred thousand dollars for all their suffering - which I assume in all truth is probably none at all."

Nice strawman.
They're not asking for several hundred thousands, but they are asking for the difference of any songs over $0.99 purchased with the gift cards (purchased prior to the price hike) to be refunded. It's unlikely they'll get anywhere near the hundred of thousand dollar mark.
by pentest June 29, 2009 10:14 AM PDT
If these morons are lucky they will be saddled with a $20000 bill for their lawyers and Apple's.
Showing 2 of 4 pages (147 Comments)
advertisement

15 sites that went kaput in 2009

Web sites launch all the time, but they also shut their doors. We highlight 15 that bit the dust this year.

Top 10 news stories of the decade

Let the debate begin: Was the iPhone more important than iTunes? Was anything bigger than Google finding a great business model? CNET offers its list of the 10 most important stories of the '00s.

About Apple

At the start of the 21st century, there's no tech outfit more influential than Apple. CNET News' Erica Ogg and other reporters will attempt to make sense of the rumors, hype, products, and people that will shape the future of the company. But Apple's not the only game in town, as the established cell phone companies and others strike back against the iPhone. E-mail Erica at erica.ogg@cnet.com.

Add this feed to your online news reader

Apple topics

advertisement
advertisement