Apple Sued Over iTunes Gift Card Scams

Seven Apple customers have launched a class action lawsuit against the company on 11 counts, alleging that Apple “knowingly or unknowingly activated a scam on an iTunes gift card” (via Obviously Apple).

ITunes Gift Card Scams

Complainants say that Apple is telling the victims of the scam that nothing can be done once the money is spent, and that it is a lie.

Despite the fact that Apple retains funds from purchases made using iTunes gift cards for four to six weeks before paying suppliers of the App Store and iTunes Store and keeps a 30% commission on fraudulent products, Apple’s web page and other communications falsely inform the public that all fraudulent products are irrecoverable.

ITunes gift card scams are fairly common, and The FTC has a web page all about it. The scammer could pretend to be from technical support, the IRS, or say that a family member is in jail and that he needs gift cards as payment. They then use the gift cards to buy products for resale, or buy apps they control and receive payment on the App Store.

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