Staff at Carphone Warehouse, the UK-based mobile communications retailer, are alleged to be misleading customers about Apple’s iPhone insurance policy, the BBC has claimed.
The information being communicated to prospective buyers or customers, who expressed fears about losing their iPhone, was that they would have to buy a new 18-month contract at a cost of GBP630 in the event of losing their handset, which was not true, an undercover report by the BBC claimed.
According to Apple’s iPhone policies, the customer would have to buy a new handset in the event of losing the iPhone, but the old 18-month contract would still be valid. Carphone staff members in three out of the five stores analyzed did not reveal this information.
They were reportedly comparing the insurance offered by O2, the only other UK mobile retailer authorized to sell the iPhone, with that of the store. This is the second time in the last two years that Carphone Warehouse has been involved in controversy. The Financial Services Authority fined the firm GBP245,000 for not following rules on selling insurance in 2006.
The firm denied the reports and stated that this could have been a result of confusion among a few sales consultants.
The small number of complaints were not a fair reflection of the experience of thousands of iPhone customers who have received insurance advice in our stores, a Carphone Warehouse spokesperson told the BBC.