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A proposed $1.25-million class-action settlement could pay back Canadians scammed with Apple gift cards — though how much each person gets is still undecided
Losing money to a gift card scam can feel like a quick, sad end to a short story — the code is used, the funds are gone and there is no bank to call for a reversal.
That assumption is why a proposed $1.25-million class-action settlement matters to Canadians who bought Apple gift cards and later handed the redemption code to a scammer. The case, filed in Ontario, argues Apple could have done more to stop this specific type of fraud, in which fraudsters trick victims into paying them with Apple, App Store, or iTunes gift cards, and then have those funds almost immediately redeemed on Apple's ecosystem.and the allegations have not been proven in court.
Still, if a judge signs off on the deal, thousands of Canadians who assumed their loss was permanent could be in line for at least a partial payout. Here is who might qualify, what a payout could look like and what to do while the case works its way through the courts. Michael Ferracci v.
Apple Inc., Apple Value Services and Apple Canada Inc. , was filed in the Ontario Superior Court of Justice on behalf of Canadians who lost money in gift card scams involving iTunes, App Store or Apple Music gift cards. The claim argues that because those cards are redeemed on Apple's own platforms, the company had the ability to flag suspicious activity and reverse fraudulent transfers, but did not do so consistently for victims.
While Apple denies responsibility, the company has agreed to a global settlement of $1.25 million to resolve the case, inclusive of legal fees — which still need court sign-off — and the cost of administering the settlement. The class has already been certified for settlement purposes, meaning the deal now just needs a judge's final approval.
You may be eligible if you bought one or more iTunes, App Store or Apple Music gift cards any time from January 1, 2016 onward, gave the redemption code to someone you didn't know after they asked for it under false pretences and never got a full refund or other compensation for the loss, from Apple or anyone else. That description covers a familiar scam pattern: A caller posing as the Canada Revenue Agency, a utility company or tech support demands immediate payment and insists it has to be in the form of a gift card code read out over the phone.
Because the eligibility window stretches back nearly a decade, Canadians who assumed too much time had passed, or that their case was too small to matter, could still be part of the class. This is the part the settlement doesn't answer yet. The $1.25-million fund covers legal fees, administration costs and payouts together, and the amount each eligible person receives will be set later under a"Distribution Protocol" the court has not yet released.
In practice, that likely means partial compensation, not a full refund. If several thousand Canadians file valid claims, the fund split among them — after fees and administration costs — could work out to a modest amount per person. For those with larger losses, a proportional split may still fall short of what was taken, so this is worth treating as possible partial relief, not a guaranteed windfall.
For the moment, Canadians who want to remain part of the class action don't need to file anything to keep their eligibility. Key procedural deadlines have already passed: The cutoff to opt out of the class was Aug. 28, 2026, followed by the Aug. 31 deadline to submit written comments or objections.
The case reached a critical milestone on Sept. 15, 2026, when the Ontario Superior Court of Justice held its scheduled approval hearing in Toronto to decide whether to approve the settlement, payout distribution, and legal fees. With the court process moving forward, the official claims window and distribution timeline will be published once the court issues its final approval. If the settlement is approved, claim filing dates and instructions will be published on the settlement website.
Until then, it's worth pulling together anything that documents the loss, such as the original gift card receipt, screenshots of the request for a code and any record of contacting Apple about the fraud, since those details will likely support a claim once the filing window opens. Whatever the settlement ultimately pays out, the underlying lesson holds regardless of the court date: No legitimate government agency, utility or business will ever ask to be paid in gift card codes read over the phone.
Treating that request as an automatic red flag remains the cheapest form of protection available, settlement or not. Here's what it actually coversThe most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Apple Music Canadians Losing Money Ontario Superior Court Of Justice App Store Itunes Gift Cards Settlement The Settlement Gift Card Scam
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