Apple has announced a Headphones with Remote Replacement Program (http://www.apple.com/support/headphones/replacementprogram/). The company says it’s determined that the Apple Headphones with Remote included with the iPod shuffle (third gen) may fail under certain conditions.
Apple says a “very small percentage” of iPod shuffle owners have experienced this issue. These headphones were included with the iPod shuffle made between approximately February 2009 and February 2010.
If your headphones stop working or work intermittently, Apple will replace them, free of charge, for two years from date of purchase. Symptoms of the affected headphones include: controls are non-responsive or work intermittently; unexpected volume increase or decrease; and/or unexpected playing of voice feedback.