Apple Fined for Selling Contracts Without Wash. License

Washington Insurance Commissioner Mike Kreidler levied a $100,000 fine against Apple Computer Inc. for selling service contracts from 2000 to 2004 without registering as a service contract provider.

“If a consumer decides to purchase a service contract for a computer or appliance, they hope they’re buying peace of mind should something go wrong with the product,” said Kreidler. “And they assume the company has taken the basic step of registering in our state.”

Under a 1999 Washington law, all companies selling service contracts that promise to repair, replace, and maintain appliances, computers, electronic equipment, and other consumer products must register with the Office of the Insurance Commissioner.

Apple Computer failed to register for four years after the law took effect. In that time, the company sold 43,080 service contracts. To date, the Office of the Insurance Commissioner has not received any complaints regarding Apple Computer’s contracts and the company is now registered.