Apple Ignores the Interests of App Store Consumers in China?

Some suggestions to Apple’s Chinese Operation

As reported by IT Times (note: the link is in Chinese), some apps in Apple’s App Store are complained by clients for its poor quality due to the loose supervision by the company, and also the settlement on the problem is difficult when encountered such problems. (the image above is the screen shot of one of the complained apps in App Store)

Therefore, we have searched the reports and news concerning the apps on the internet, by which we have found more than ten apps are charged for its fraudulence, including the apps designed for Taobao, the biggest online shop in China, mobile phone carrier service apps and traffic violation record, and the complains focus on the non-conformance to its publicity or being available. Besides, it also comes to our attention that the refund application is complicated for the entrance for the refund application is too difficult to be found shall there were no aid from Apple’s service tel.

Surely, we also have heard some different voices from the app developer, some of who state that the quality of the app in the App Store may fall once there were no strict limit on the refund application.

Then, what attitude or measures shall Apple take when facing the voices? Bridge IP Law Commentary gives our opinions on the issue as follows:

I. the dilemma in the supervision in App Store

As known to all, the server of App Store is set up outside PRC, and the apps in the Store are submitted by developers to Apple, who is only in charge of the examination before the uploading. Thus, there comes the question that shall the program sale in App Store be adjusted by China laws and regulations?

By the General Principles of Civil Law, China laws and regulations shall be applied to any civil activities within the People s Republic of China, from this aspect, the purchase of apps by local consumers shall be ruled by China laws and regulations. However, the fact is that the administration and supervision on the App Store is beyond China administrations’ power, and once the lawsuit could be filed for any disputes emerged related, the enforcement of the sentence made herein is relatively difficult.

II. What’s Apple’s attitude towards the fraudulent apps?

According to the existing Guideline of APP Store (the “Guideline”) issued by Apple to the developers, Article 2.2, 2.12 and 22.2 says that any apps non-conforming to its publicity, no obvious application or without lasting entertainment, or being false, fraudulent or misleading will be or may be refused. And for this reason, any fraudulent apps shall be the liability of Apple’s negligence on its supervision duty. Moreover, Bridge IP Law Commentary also notices that no punishment has been regulated other than the “refusal”.

On the other hand, Bridge IP Law Commentary also has retrieved the LICENSED APPLICATION END USER LICENSE AGREEMENT (the “User Agreement”) with Article e “NO WARRANTY” in it providing that “YOU EXPRESSLY ACKNOWLEDGE AND AGREE THAT USE OF THE LICENSED APPLICATION IS AT YOUR SOLE RISK AND THAT THE ENTIRE RISK AS TO SATISFACTORY QUALITY, PERFORMANCE, ACCURACY, AND EFFORT IS WITH YOU. ” That means the user shall take any possible dissatisfaction on the apps bought from Apple. For this standard term, due to the main rights of the consumer is deprived by its provision, the term shall be deemed as invalid by the China Contract Law.

III. Are there any other reliefs for China users?

Basing on the complaints we have found, most of them focus on the local developed apps. For these fraudulent apps, beside the refund application through the complicated procedure, local users could also claim to the developer directly instead of through Apple, the operator of the App Store.

By Article 35 of the Consumer’s Interest Protection Law, the consumer or other victims suffering the personal or property losses due to the defect of the product, they could either claim to the seller or the producer. That is to say any app users suffering the personal or property losses may choose to claim the right directly to the developers. And also for the domicile and property of such developers are in China, the lawsuit filing and enforcement of the judgment could be guaranteed. Despite these, the right protection way of local users is still limited by the legal preconditions. Also the developers are difficult to be found for Apple is not likely to reveal the developers email or bank account.

In our opinion, fraudulent apps mainly come from the less attention by Apple on China market. As told, there has no localization department for China has been established in the company, which actually helps in the poor-quality apps, and there even once appeared the apps for identity document forgery. Therefore, we call on the measures taken by Apple to brake the development of fraudulent apps for the guarantee of local users’ interests. After all, China is a big cake which could not be ignored by any companies.

Author: Albert Chen
Attorney-at-law of DeBund Law Offices
Co-author: Mr. You Yunting
Founder & Editor-in-Chief of Bridge IP Law Commentary
Partner & Attorney-at-law of Shanghai DeBund Law Offices
Email: Bridge@chinaiplawyer.com, Tel: 8621-5213-4900,
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Bridge IP Law Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.

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