New Jersey Attorney General Matthew J. Platkin said Apple will pay a $150,000 penalty for repeatedly failing to comply with state clear-pricing laws, in violation of a 2017 agreement to display in-store costs directly on or near merchandise, such as iPhones, iWatches, and other digital devices and accessories.
Apple entered into the 2017 consent order to resolve allegations that the company’s in-store digital pricing system violated the state’s consumer protection laws, according to a statement from Platkin.
The $150,000 penalty is the largest settlement ever obtained under New Jersey’s Merchandise Pricing Act.
NJ’s Clear Pricing Legislation
New Jersey’s clear pricing laws require retailers to clearly mark item prices on products or shelves, display unit prices for comparison (like price per ounce), and ensure checkout prices match advertised ones, protecting consumers from misleading costs.
The Consumer Fraud Act also covers unconscionable practices, allowing remedies for incorrect or deceptive pricing, ensuring fair dealings, especially with clear marking and unit pricing for better value comparison.
The state’s Division of Consumer Affairs said after reinspecting all 12 Apple Stores in New Jersey, they discovered that pricing was not available on or near the displayed products. Accessories like charging cables, cases, and audio devices were also sold without visible prices, a direct violation of New Jersey’s Merchandise Pricing Act. Several stores also failed to post refund policies, another requirement under the state’s Consumer Fraud Act.
Outcome of the Settlement
Platkin said Apple is a repeat offender that has already been held accountable for similar issues. The 2017 agreement was designed specifically to address Apple’s reliance on digital pricing methods inside physical retail spaces.
- $150,000 Penalty: The largest fine issued by New Jersey’s Division of Consumer Affairs under the Merchandise Pricing Act.
- Practice Changes: Apple must install continuous, readily available pricing information and prominently display its refund policy at store entrances.
Apple is installing new 4 ½-inch-by-3 ½-inch “pricing wedges” at each table where devices and accessories are sold. The pricing wedges will show the total selling price for each device type displayed on that table.
Key Requirements
● Accurate Checkout: The price at checkout should match the shelf price; if not, the lower price generally applies.
● Clear Marking: Prices must be visible on items or their display.
● Unit Pricing: For many commodities, retailers must show the price per unit (ounce, pound, etc.) to help shoppers compare value.
● No Misleading Language: Pricing must be straightforward, avoiding confusing terms.
“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 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.”
According to the AG’s office, the penalty assessed against Apple is memorialized in a consent order that also requires Apple to change its business practices by, among other things:
- not advertising, offering for sale, or selling merchandise in Apple stores unless the total selling price of the merchandise is: (a) plainly marked by a stamp, tag, label, or sign affixed to the merchandise; (b) apparent on the screen of the device itself upon limited interaction; or (c) located in close proximity to where the consumer finds the merchandise, so that consumers can independently know the price while looking at the merchandise without the need to interact with a salesperson;
- not requiring consumers to interact with an electronic device to determine the selling price of merchandise in Apple stores unless: (a) the total selling price is apparent upon limited interaction with the device; and (b) the total selling price is displayed clearly and conspicuously; and
- clearly and conspicuously posting refund policies for all merchandise in at least one of the following locations: attached to the merchandise itself; affixed to each cash register or point of sale; in a place where it is clearly visible to the buyer from the cash register; or posted at each store entrance used by the public.
“We are pleased to have reached a resolution that honors New Jersey’s commitment to transparency in the marketplace while allowing Apple to continue offering its customers a tech-forward shopping experience,” said Sharon M. Joyce, Acting Director of the Division of Consumer Affairs. “We welcome innovative marketing concepts in the retail industry as long as stores comply with the laws in place to protect consumers, especially when they’re shopping for expensive items like smartphones and computers.”
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs or by calling 1-800-242-5846 (toll-free within New Jersey) or 973-504-6200.