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Apple says that an Ontario recycler who was hired to dismantle iPhones, iPads, and iWatches went behind the company’s back and sold over 100,000 devices in a lawsuit reportedly filed against GEEP Canada.
According to The Logic, Apple’s lawsuit is seeking $31 million CAD from GEEP Canada, a recycling firm that is now part of Quantum Lifecycle Partners, along with all profit from the allegedly unauthorized resale of its devices.
Apple Tries to Clean Up Its Act
Apple contracted with GEEP and other recyclers as a part of an effort to improve its environmental image. According to The Verge, Apple hopes to become “carbon neutral by 2030.” As a part of this effort, the company partners with e-waste management companies to help recover some of the valuable parts of its devices.
According to the complaint, Apple sent over 500,000 of its devices to GEEP Canada for dismantling between 2015 and 2017.
Though the tech giant reportedly touts the “reuse” of devices as a way to meet its environmental goals, it claims that the resale of devices by GEEP was unauthorized because the devices it sent to the Ontario recycler were not of sufficient quality to be put back on the market.
Recycled Devices Discovered Through Internet Access
According to The Verge, the lawsuit alleges that the illicit resale of Apple devices by GEEP took place between January of 2015 and December of 2017. Apple reportedly says that it discovered the theft when it conducted an audit. Allegedly, the company discovered that nearly 20% of the devices it had sent to GEEP to be dismantled were still accessing the internet.
“At least 11,766 pounds of Apple devices left GEEP’s premises without being destroyed – a fact that GEEP itself confirmed,” reportedly states the complaint. “These misappropriated devices were then subsequently sold at a significantly higher price than other recycled materials to downstream vendors who refurbished and resold the devices to consumers.”
IPhone In Canada reports that Apple became suspicious after it discovered that certain areas of GEEP’s warehouse were not under camera surveillance. The tech giant notes that allegedly misappropriated devices that do not access the internet through a cellular network may also have been stolen and resold.
Concern About User Safety and Security
According to Apple, though the reuse of devices can be environmentally friendly, the iPhones, iPads, and iWatches they sent to GEEP did not meet the company’s quality or safety standard and should not have been reused.
“Products sent for recycling are no longer adequate to sell to consumers and if they are rebuilt with counterfeit parts they could cause serious safety issues, including electrical or battery defects,” Apple told The Verge.
Ontario Recycler Denies Wrongdoing
For its part, GEEP reportedly claims that it did not direct the resale of Apple devices. Instead, it says that its employees stole the devices and were responsible for the illicit sale of nearly 12,000 lbs. of Apple technology.
The Verge reports that Apple contradicts these claims, which are part of another lawsuit filed by GEEP against the employees it accuses of stealing. Apple reportedly claims that these employees are actually senior management at GEEP and directed the alleged theft and sale of its devices.
Apple reportedly alleges in its lawsuit that the resale of devices has harmed its brand, as well as demand for new Apple products. It reportedly cancelled its contract with GEEP in late 2017 or early 2018.
GEEP reportedly stated that it has suffered losses due to Apple’s allegations of theft and the cancellation of its contract with the Ontario recycler.
What do you think of the claims that the Ontario recycler illegally resold Apple devices? Tell us your thoughts in the comment section below!
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2 thoughts onApple Sues Ontario Recycler for Reselling Devices
Add me please since I have an iPhone thanks
This was a criminal act committed by GEEP. They willfully and deliberately violated their contract with Apple, stealing and reselling devices that were not theirs to sell or give away. They were contracted to disassemble the devices and they did not. Every device that they sold or stole in violation of their contract is a potential loss of a sale. Additionally it seems that senior management at GEEP should be put in prison for false witness and lying to authorities for attempting to blame the theft on employees when they were the ones directing the theft.