Millions of people who have bought new Apple or Samsung 4G smartphones since October 2015 are likely to be included as class members in Which?'s £480 million collective claim against chip maker Qualcomm, and potentially entitled to their share of compensation.
The consumer champion believes Qualcomm, a multi-billion-dollar US tech company, has been abusing its dominant market position in breach of competition laws, resulting in smartphone manufacturers Apple and Samsung overpaying Qualcomm, with these extra costs passed on to consumers.
Which? estimates that Qualcomm has so far taken over £480 million out of UK consumers' pockets, with nearly 30 million people affected. In early 2021 Which? sought permission from the Competition Appeal Tribunal to bring an opt-out collective claim against Qualcomm on behalf of affected consumers.
The ability to bring claims on behalf of consumers on an opt-out basis was something Which? championed for many years and was introduced by the Consumer Rights Act 2015. Recently, the Tribunal granted Which? a 'Collective Proceedings Order' or 'CPO', giving Which? permission to bring the claim on an opt-out collective basis.
This means that if consumers who purchased one or more new Apple or Samsung 4G smartphones since October 2015 were living in the UK on May 17, 2022, they will be automatically included as a class member unless they actively opt-out of the claim. If a class member chooses to opt-out, they will lose the right to any compensation should Which? ultimately be successful.
If consumers were not living in the UK on May 17, but have purchased one or more new Apple or Samsung 4G smartphones in the UK since October 2015, they can choose to opt-in to Which?'s claim. Consumers will need to notify Which? by November 15, 2022 of their choice to opt-out, or to opt-in if they are no longer living in the UK, using one of the options listed on the claim website.
To understand more about opting out and opting in, and to register for updates about the claim, people should visit www.smartphoneclaim.co.uk.
Anabel Hoult, Which? Chief Executive, said: "We believe smartphones are expensive enough and unlawful costs being passed on to millions of handset owners make prices even higher. Which? brought this claim against Qualcomm on behalf of millions of affected UK consumers, as it would not have been realistic for people to seek damages from the company on an individual basis. That's why it's so important that consumers can come together and claim the redress they are entitled to.
"We now urge everyone who thinks they may be affected to visit www.smartphoneclaim.co.uk to find out more about the claim and sign up for updates."
A Qualcomm spokesman said: "The claims here recycle allegations in an old case brought by the Federal Trade Commission in the U.S., which Qualcomm won. The theories seen here were discredited two years ago by a unanimous panel of judges at the Ninth Circuit Court of Appeals in the U.S."
