Apple, Croma asked to refund deceased customer's iPhone cost to kin over defect

Both the manufacturer and the seller are "jointly and severally liable for the defective product", a consumer commission said in the order passed earlier this month, as the two companies failed to resolve the defect in the device purchased by the customer, who is now deceased.

Mumbai: A consumer commission here has directed Apple India and Croma to refund an iPhone cost of Rs 65,264 to the legal heirs of a customer for failing to resolve a microphone defect in the device, holding the two companies deficient in service.

Both the manufacturer and the seller are "jointly and severally liable for the defective product", the commission said in the order passed earlier this month, as the two companies failed to resolve the defect in the device purchased by the customer (now deceased).

The District Consumer Disputes Redressal Commission, Mumbai (Suburban) held that the "manufacturer (Apple) merely mentioning certain unauthorized modification or damage in hardware cannot be the correct resolution" for the customer's grievance.

It further ruled that the seller (Croma) too cannot escape liability merely by stating the "defect is attributable to the manufacturer".

"Once the product was sold through their outlet, they assumed responsibility for ensuring that the product was free from defects and serviceable," the commission noted.

It said the "principle of vicarious liability squarely applies", as the seller stands in a position of trust and derives commercial benefit from the sale.

The complainant purchased an iPhone 11 for Rs 65,264 from a Croma store in Mumbai on June 4, 2021.

Shortly after the purchase, the device developed an issue as the speakerphone function was not working during calls, with specifically "no speech from mic".

The complainant approached Apple's authorised service centre, but repairs were denied on the grounds of "unauthorized modifications in the device," rendering it ineligible for warranty service.

Despite repeated complaints and emails, the opposite parties failed to address the grievance, following which the complainant approached the commission.

During the course of proceeding, the customer passed away, but the complaint was continued by his legal heirs.

The Apple India Private Limited, in its response, admitted the purchase and the issue with the microphone. But it reiterated that the device had unauthorised modifications, voiding the warranty.

Infiniti Retail Limited (Croma) failed to appear and was proceeded against ex-parte.

The commission, after perusal of documents on record, held that Apple failed to specify exactly which term or condition of the warranty was breached by the complainant.

"Merely referring clauses of warranty terms and condition cannot be sufficient to attribute the particular defect as certain unauthorized modification or damage to software," it noted.

The commission concluded that documents and evidence brought on record are sufficient to ascertain the defect in goods coupled with deficiency in service provided by the opposite parties.

It ruled that both the manufacturer and the seller are "jointly and severally liable for the defective product".

The commission directed both the opposite parties to refund the iPhone cost of Rs 65,264, along with a 6 per cent interest per annum from the date of the complaint (August 6, 2021) until the date of actual payment.

The two companies were also directed to pay Rs 15,000 as compensation for mental agony and Rs 2,000 for legal expenses to customer's family.