APPLE INC. | Prior Notice Requirement Before Subscription Auto Renewals at APPLE INC.

Status
Omitted
Previous AGM date
Resolution details
Company ticker
AAPL
Lead filer
Individual
Resolution ask
Adopt or amend a policy
ESG theme
  • Social
ESG sub-theme
  • Digital rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Apple Inc. amend its policies to require that customers receive clear, advance notice before the automatic renewal of any Apple subscription services, including those initiated through free trial periods, and that the renewal not proceed without this notice being provided to the customer within a reasonable timeframe prior to the renewal date.
Supporting statement
Supporting Statement: Apple’s current practice of automatically renewing subscriptions without providing clear, advance notice prior to renewal can result in customers being charged for services they no longer use or intended to cancel, particularly when these subscriptions begin with a free trial period. Apple states that it is committed to “upholding the highest standards of integrity and transparency in everything we do,” and that it designs products and services “with the customer at the center.” However, the lack of prior notice for subscription renewals does not align with these principles of transparency, customer respect, and ethical business practices. A significant portion of revenue from Apple’s services segment may include subscription fees collected from customers who are unaware of an upcoming renewal, particularly after a free trial. While this may currently generate revenue, it exposes the company to reputational risk, potential regulatory scrutiny, and customer dissatisfaction. This practice is inconsistent with the strong brand Apple has built around customer trust, user friendly experiences, and ethical conduct. Providing prior notice before subscription renewals: • Aligns Apple’s practices with its stated values of transparency and respect for customers. • Reduces the risk of customer frustration and chargebacks. • Protects long term customer loyalty, which is more valuable than short term revenue gained from unintentional renewals. • Keeps Apple aligned with global regulatory trends moving toward requiring clear notice and consent for recurring charges. Apple is a major company that does not need to rely on revenue streams that may exploit customer oversight. Instead, Apple has the opportunity to set a new industry standard by ensuring customers are informed and given a clear opportunity to cancel before a subscription renews, maintaining Apple’s reputation for leadership and customer first principles. I urge shareholders to vote in favor of this proposal to align Apple’s subscription renewal practices with its ethical standards, enhance customer trust, and protect long term shareholder value.

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