June 14, 2024 Insurance Decisions and Freeze and cease trade orders

Montréal – On June 6, 2024, the Autorité des marchés financiers (“AMF”) entered into an agreement with Apple Canada Inc. (“Apple”) whereby Apple committed to ensure that the AppleCare+ Plan is offered by an authorized insurer in Québec. Apple also agreed to pay an administrative penalty of $175,000.

On investigation, the AMF concluded that the accidental damage coverage provided in Section 3.2 of  the terms conditions of the AppleCare+ Plan constitutes insurance because the covered risk  is not limited to device defects or malfunction. Consequently, this coverage must be offered by an insurer and distributed under the distribution without a representative (DWR) regime.

Apple, on being informed of the AMF’s conclusions, agreed to cooperate with AMF staff by being transparent and acting in good faith. In fact, Apple commenced the work required to change the way AppleCare+ is offered and distributed in Québec on its own initiative, before the agreement was signed.

In order to protect the rights of the customers involved, the AMF wishes to specify that all AppleCare+ contracts already entered into or that will be entered into during this standardization process will remain in force in accordance with the contract’s terms and conditions.

About the Autorité des marchés financiers

In its role as regulator, the Autorité des marchés financiers acts to maintain a financial sector that is dynamic, operates with integrity and warrants public confidence. It regulates, in whole or in part, activities in the following sectors: insurance, securities and derivatives, distribution of financial products and services, deposit institutions, mortgage brokerage and credit assessment.

INFORMATION

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Sylvain Théberge: 514-940-2176
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