How the EU got me a free iPhone

Knowing EU law is more useful than it seems, as Jon Worth found out.

My 16 month old iPhone 4S had a hardware fault: the power button on the top of the phone would not press properly, it was partially stuck. You had to push the button with all your might to get the thing to turn off, or just to turn off the screen. It turns out this is a very common iPhone 4 and 4S problem – see here, as well as numerous similar posts on Apple’s forums.

I’d bought the phone from the Apple Store online, so had to go to an Apple Store to get someone to have a look at it. There is no store in Copenhagen or Brussels, so I went to the Geneva store when I was working in Switzerland last week. I booked my appointment at Genius Bar, and – in French – started to explain my problem. Barely had I got to the end of the sentence and the guy knew exactly what I was about to report… but he couldn’t help me. My phone was out of warranty, and I had not bought it in Switzerland.

The latter is important, because my case for getting a new phone, for free, from Apple, was by citing Directive 1999/44/EC about guarantees for electronic goods in the EU. This basically says that if a fault was in the product when it was purchased, the manufacturer will have to take it back and replace it within the first 2 years – i.e. double the 1 year warranty that Apple gives. More details about the Directive here, and a legal case about it in Belgium here. I’d purchased my phone direct from Apple, that’s why I needed to go to them for the replacement. If I had the phone on a contract from O2 or Vodafone or whoever, I would have had to do all of this via the mobile phone company instead.

Anyway, the guy in the Geneva store said that I better phone Apple’s main European call centre in Ireland and see what they say, as Geneva could not make a judgment on the applicability of EU law. So back at my hotel I called the call centre in Ireland. It took 30 minutes on the phone, and my call was referred to three different staff. My line was clear and persistent:

  • The fault with the power button is well known
  • The phone was purchased in the EU (shipped from Ireland to a UK address)
  • That hence EU law should apply, and I should be entitled to a new phone even though I was beyond Apple’s own 12 month warranty

The most senior person I spoke to was most amenable. Rather than ask about the phone directly, he asked about my history as a purchaser of Apple products. I’ve only had Apple computers since 1994, and said so. He even asked for the serial number of my MacBook Pro to check I was telling the truth – giving this reassured him that I was. He then said that, in this case, they would be willing to make an exception… So he put a note on my record with Apple, and said I could go to any Apple Store to get a replacement.

So off I went back to the Geneva store to collect my replacement phone. “Comment est-ce que vous avez réussi à obtenir cela?” [How did you get that?] the guy there asked me. “Enfin, la raison que je suis à Genève aujourd’hui est pour donner des cours en politique de l’UE… donc je connais mes droits comme consommateur en droit européen!” [The reason I'm in Geneva today is to give courses in the politics of the EU… so I know my rights as a consumer under European law!] So I handed in the old phone, received the new one from the store, and off I went. Mission accomplished.

This was originally posted on Jon's blog, and has been reposted here with permission.

Photograph: bredgur/flickr, CC-BY-SA

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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR