New iPad Deceptive Advertising, Apple fined 2.25 million AUD
Apple agreed to pay a penalty of 2.25 million AUD related to the latest iPad misleading advertising. Apple iPad is claimed to be able to access the latest 4G network in Australia, but it’s not.
Institutions Australian Competition and Consumer Commission (ACC) sued Apple to court. Because sometime in March and May this year, Apple made misleading claims on its website, at the Apple Store, in advertisements and other promotional material that the new iPad can access the 4G network.
Though true, new iPad does not match the connectivity standard in the land of Kangaroos. Australia has a 4G network that was held by the operator Telestra, but the frequency is not appropriate and can not connect with the new iPad.
Court of Federal Court to confirm that Apple agreed to settle the case by paying a fine. In addition they must pay court costs of 300 thousand dollars in Australia.
Clon Golvan representing the ACCC satisfied with the decision. He assessed a substantial fine as this will give a signal to the industry players to not mislead consumers.
Apple also has offered a refund on the iPad buyers who want to use Telstra’s 4G networks but could not. Court judges themselves still want to continue processing the case.
Mordy Bromberg judges still want to know how many consumers are affected by these ads and what penalties are appropriate given Apple. As quoted from the Herald Sun, Friday (06/08/2012).