May 9, 2008 7:15 AM PDT

Apple settles with Canadian iPod owners

Posted by Dawn Kawamoto

Apple is offering a $45 credit to Canadian owners of older versions of its popular iPod, a move that strikes of deva ju over a similar settlement agreement reached in 2005 with U.S.-based iPod owners.

Under the proposed settlement, as reported in the Montreal-based Gazette newspaper, Apple Canada plans to offer a $45 credit to iPod owners who purchased their music players before June 24, 2005. The credit can be used at Apple's online retail store.

The settlement is over allegations that the iPod batteries failed after three hours in-between charges, compared with its advertised claims of an eight-hour battery life. Up to 80,000 Canadians are expected to be eligible under the proposed settlement, according to the Gazette.

This means the Canadian settlements, which are expected to be wrapped by June 20, could cost Apple up to $3.6 million.

Apple did better with the two Canadian class-action settlements than with its U.S. lawsuits. Under the 2005 U.S. settlement, Apple agreed to provide a $50 store credit and extended warranties to iPod owners who purchased their device between its introduction in 2001 and May 2004.

U.S.-based iPod owners alleged their devices remained charged for four to five hours, verses the 10 hours that were advertised. Up to 2 million U.S. iPod owners were eligible to receive the settlement, pushing the price tag up to $100 million for Apple.