Target Facing False Advertising Lawsuit Over ‘Unlocked’ iPhones

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A proposed class action lawsuit claims Target has misled consumers by falsely advertising that some of the iPhones it sells are “unlocked,” meaning they’re capable of operating with any wireless carrier.

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The 17-page Target lawsuit accuses the retailer of engaging in a “bait-and-switch” marketing scheme to lure consumers into buying an iPhone they believe is not “locked”—that is, tied to a specific service carrier and incompatible with others.

The case alleges Target has misrepresented the purportedly unlocked iPhones given that the products indeed contain software and antennae that prevent the use of other networks and are, in short, locked.

As the complaint tells it, the plaintiff, a New York resident, purchased an iPhone 11 from Target for $249.99 in November 2023. Before he bought the phone, which the retailer explicitly advertised as unlocked, the man confirmed with multiple Target employees and a store manager that the product could be used with any service carrier, the class action suit says.

However, when the plaintiff later tried to activate service with his carrier, AT&T, he was “shocked to learn” that the supposedly unlocked phone was, in fact, exclusively tied to Verizon, the filing relays. The consumer claims that when he visited a Verizon store—where employees confirmed the iPhone was indeed locked—he was told he had to make two minimum payments of $54 to unlock the phone.

Per the case, consumers such as the plaintiff are willing to pay a premium for the versatility and added value of an unlocked iPhone, which gives them the freedom to change carriers. As such, thousands of shoppers seeking unlocked iPhones have overpaid as a result of the retailer’s deceptive practices, the Target class action lawsuit alleges.

The plaintiff contends that he would not have bought the iPhone had he known it was misrepresented and would require additional payments to unlock.

The lawsuit looks to represent anyone who purchased an iPhone advertised as unlocked from a Target store at any time since November 2016.

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