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Tag: complaint

  • Apple Faces Accusations Of Monopoly And Restrictive Practices From Chinese Users

    Apple Faces Accusations Of Monopoly And Restrictive Practices From Chinese Users

    A collective of 55 Chinese iPhone and iPad users submitted a grievance to China’s market regulation body on Monday, as per a lawyer representing the group. They assert that Apple is leveraging its market dominance to impose restrictive app distribution and payment systems, while also levying significant commissions.

    Allegations Against Apple

    The claimants, under the leadership of lawyer Wang Qiongfei, accuse Apple of monopolizing iOS app distribution in China. They contend that the company allows alternative payment methods and app stores in other regions due to regulatory pressures from the European Union and the United States. However, they believe this flexibility is not extended to the Chinese market.

    The complaint points out three key infringing practices by Apple that are believed to contravene China’s Anti-Monopoly Law. The first is the alleged compulsion for consumers to buy digital goods exclusively through Apple’s In-App Purchase system. The second is the purported restriction of iOS app downloads to the App Store. Lastly, the plaintiffs accuse Apple of imposing commissions of up to 30 percent on in-app purchases.

    Apple has yet to provide a comment in response to these accusations.

    Previous Legal Endeavors

    This represents the second time Wang has spearheaded a complaint against Apple. A similar lawsuit was filed in 2021, but it was ultimately dismissed by a Shanghai court the following year.

    Wang anticipates that this administrative complaint will progress more rapidly through the regulatory system compared to the preceding civil lawsuit. He is currently appealing the verdict of the previous lawsuit to China’s Supreme People’s Court. The court heard the arguments for the appeal in December, and a decision is still forthcoming.

    Recent tensions between China and Washington have prompted China to initiate a series of antitrust investigations aimed at US tech companies. This includes chipmaker Qualcomm, which is currently under scrutiny for its acquisition of Israeli firm Autotalks.

    Questions & Answers

    What are the main allegations against Apple?
    The main allegations against Apple are that it is forcing consumers to buy digital goods exclusively through its In-App Purchase system, restricting iOS app downloads to the App Store, and imposing up to 30 percent commissions on in-app purchases.

    Who is leading the complaint against Apple?
    The complaint against Apple is being led by lawyer Wang Qiongfei on behalf of 55 Chinese iPhone and iPad users.

    What precedent exists for this type of complaint against Apple in China?
    A similar case was filed by Wang Qiongfei against Apple in 2021, but it was dismissed by a Shanghai court. Wang is currently appealing this decision to China’s Supreme People’s Court.

  • Shein hit with complaint from EU consumer group over ‘dark patterns’

    Shein hit with complaint from EU consumer group over ‘dark patterns’

    The BEUC, a Pan-European consumer organization, has lodged a complaint with the European Commission against Shein, an online fast-fashion retailer. The grievance centers on Shein’s use of “dark patterns”, a series of strategies designed to increase purchases via its app and website.

    Manipulative Tactics

    The tactics employed by Shein, as described by BEUC, include pop-up messages urging customers to stay on the app to avoid missing out on deals, countdown timers creating a sense of urgency to finalize purchases, and an infinite scroll feature on the app. All these methods, BEUC asserts, could fall under the definition of “aggressive commercial practices”. The consumer advocacy group further highlighted Shein’s frequent use of notifications, with one instance showing a single phone receiving 12 alerts from the app in one day.

    Agustin Reyna, BEUC’s director general, commented on the matter, stating that such tactics align with the fast-fashion trend of stimulating mass consumption through volume. The issue, according to Reyna, lies in whether Shein is willing to abolish these “dark patterns”, given their potential impact on sales numbers.

    Shein’s Response and the Role of Gamification

    Shein, in response to the allegations, stated, “We are actively collaborating with national consumer authorities and the EU Commission to demonstrate our commitment to compliance with EU laws and regulations.” The company also mentioned that BEUC declined their request for a meeting.

    Shein and its competitor, Temu, another online discount platform, have experienced a surge in popularity in Europe, partly due to their apps’ gamified features. These apps engage shoppers with games that offer the chance to win discounts and products. One of the games on Shein’s app, “Puppy Keep”, encourages users to log into the app daily, feed a virtual dog, and collect points that can be exchanged for free items. Points can be earned by browsing the app and making purchases.

    Dark Patterns Across the Industry

    The BEUC acknowledged that “dark patterns” are not exclusive to Shein, but are commonly employed by many mass-market clothing retailers. In this line, they’ve called on the consumer protection network to broaden its investigation to include other retailers. BEUC’s complaint was supported by 25 of its member organizations across 21 countries, including France, Germany, and Spain.

    Last month, the European Commission issued a notification to Shein about practices breaching EU consumer law and warned of potential fines should the company fail to address these concerns. The firm is also under review from EU tech regulators regarding its compliance with EU online content rules.

    Questions & Answers

    What exactly are “dark patterns”?
    Dark patterns are tactics used by companies on their websites or apps designed to manipulate users into making purchases or taking certain actions.

    What is the “Puppy Keep” game on Shein’s app?
    “Puppy Keep” is a game on the Shein app where users feed a virtual dog and collect points that can be used to win free items. Users can earn more points by browsing the app and making purchases.

    What actions has the European Commission taken regarding Shein’s practices?
    The European Commission has notified Shein about practices that violate EU consumer law and warned of potential fines if they do not rectify these issues. Additionally, the company is under investigation from EU tech regulators regarding its adherence to EU online content rules.