Apple to settle suit related to iTunes gift card scam - report

In 2019, a group of consumers filed a lawsuit against Apple Inc., alleging that they had been defrauded by an iTunes gift card scam. The scam involved purchasing iTunes gift cards from third-party sellers who claimed to be offering discounted prices, but in reality were charging inflated prices and using fake Apple logos and branding to deceive consumers.

The lawsuit alleged that Apple had failed to take adequate steps to protect consumers from the scam, despite being aware of the issue for several years. The plaintiffs sought damages for their losses, as well as an injunction against Apple to prevent further sales of fraudulent iTunes gift cards.

In response to the lawsuit, Apple announced in December 2019 that it would settle the case for $5 million. Under the terms of the settlement, Apple agreed to pay the plaintiffs a total of $5 million and to take steps to educate consumers about the risks associated with purchasing iTunes gift cards from third-party sellers.

The settlement was approved by a federal court in New York in January 2020, and Apple began implementing its education campaign shortly thereafter. The campaign included targeted advertising on social media platforms, as well as outreach to consumer protection organizations and other stakeholders.

It is worth noting that while the lawsuit against Apple was settled, it does not necessarily mean that the company admits any wrongdoing or liability for the iTunes gift card scam. However, the settlement does demonstrate Apple's commitment to addressing consumer concerns and taking steps to prevent fraudulent activity on its platform.