Case law

  • Case Details
    • National ID: Consiglio di Stato, Section VI, No. 5250
    • Member State: Italy
    • Common Name:Apple - Garanzia convenzionale
    • Decision type: Administrative decision in appeal
    • Decision date: 17/11/2015
    • Court: Council of State (Supreme Administrative Court)
    • Subject:
    • Plaintiff: Apple Sales International
    • Defendant: Autorità Garante della Concorrenza e del Mercato (Rome) - Italian Competition Authority
    • Keywords: consumer rights, guarantee, information requirements, misleading omissions
  • Directive Articles
    Consumer Sales and Guarantees Directive, Article 5, 2. Consumer Sales and Guarantees Directive, Article 5, 3. Consumer Sales and Guarantees Directive, Article 6
  • Headnote
    The failure to adequately inform consumers about their right to benefit of free biennial assistance, just granting to them the conventional guarantee offered for free by the manufacturer for the first year (instead of the two-year legal guarantee provided for in by law) and the offer to subscribe an additional and optional guarantee, already partially included in the biennial conventional guarantee provided for by the law, constitute an unfair commercial practice since it is an infringement of Articles 5, Paragraphs 2-3; 6 of Directive 1999/44/EC on consumer sales amd guarantees.
  • Facts
    Following investigations launched by the Italian Competition Authority, the plaintiff was fined by the same ICA, for the infringement of the provisions which set out the prohibition to carry out unfair commercial practices and, in particular, for (i) not having adequately informed consumers about their right to benefit of free biennial assistance they are entitled to by law, (ii) not having granted to consumers the aforementioned right and (iii) having just granted to consumers the conventional guarantee offered for free by the manufacturer for the first year (instead of the two-year legal guarantee provided for in by law). Furthermore, the information provided to consumers in relation to nature, scope and duration of such conventional guarantee as well as of any additional support services, did not adequately clarified the right of the consumers to be granted the two-year guarantee of compliance by the seller.

    Moreover the plaintiff, as further unlawful conduct, presented to consumers an additional and optional service called "Apple Care Protection Plan" (APP), in return for payment and without any indication about the consumer's rights on the basis of such guarantee, offering a set of services, already partially included in the biennial conventional guarantee provided for by the law.

    On appeal, the Administrative Court of first instance partially confirmed the decision of the Italian Competition Authority.

    The plaintiff subsequently lodged an appeal before the Supreme Administrative Court ("Council of State" or "Consiglio di Stato") in order to obtain the integral annulment of the Administrative Court of first instance's decision.
  • Legal issue
    Even if the plaintiff tried to focus the attention on the topic of the burden of proof and on the consumer's responsibility to demonstrate that the defect of the product has to linked to lack of conformity of the same at the time of the delivery, the Court held that the main topic is represented by the verification of the duly fulfilment of the information requirements by the plaintiff before the conclusion of the agreement. In this regard the Court confirmed the first instance's decision since the plaintiff has provided to consumers a list of misleading information.

    Moreover the Court held that the division between the parties of the burden of proof is not enough to exclude the information requirements and/or the provision of the conventional guarantee the trader has to fulfil in benefit of the consumer.

    The clear and full description of the content of the commercial guarantee is not imposed by a specific provision, but it has to be considered as a corollary of the information obligation burden on the plaintiff.
  • Decision

    Does the failure to adequately inform consumers about their right to benefit of free biennial assistance, just granting them the conventional guarantee offered for free by the manufacturer for the first year (instead of the two-year legal guarantee provided for in by law) and the offer to subscribe an additional and optional guarantee, already partially included in the biennial conventional guarantee provided for by the law, constitute an unfair commercial practice and, therefore, such type of conduct has to be terminated and sanctioned?

    URL: https://www.giustizia-amministrativa.it/cdsintra/cdsintra/AmministrazionePortale/DocumentViewer/index.html?ddocname=55GD3K3WXUNJQ3IMJ6WPABSSC4&q=

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  • Result
    The Court upheld the first instance's decision of the Administrative Court on the basis of which it has been stated that the plaintiff's conduct constituted an infringement of the provisions which set out the prohibition to carry out unfair commercial practices since such conduct had to be considered as deceptive, aggressive and characterized by misleading omissions and undue influence put in place by the defendant and Apple Sales International has been sanctioned with a fine of € 540,000.00.