X

OK, we did mislead: Apple force to cough up $2.25 m for iPad + 4G false advertising.
The case, heard in Federal Court in Sydney today, follows a prolonged battle between the consumer watchdog and Apple over what the ACCC branded as “misleading” and “false” ads for “iPad with Wifi + 4G”, which claimed was 4G compatible, when in fact it worked on 3G networks, only. 

Apple were pulled up by the Australian Competition and Consumer Commission in March, following the new iPad’s release.

After denying it had mislead Australians, it has now agreed to pay over a $2 million fine and costs to the ACCC, which amount to $300,000, and admit it did mislead consumers.

“Apple’s use of the descriptor ‘4G’ mislead consumers because it suggested to Australian consumers that the product could, with a SIM card, connect to a 4G mobile data network in Australia, when this is not the case,” an ACCC spokesperson told SmartHouse.

20120608122558bf530 600x300 Apple $2.2M Fine Dodgy iPad 4G Ads
Click to enlarge

The giant previously denied it has mislead consumers and provided undertakings to the Federal Court to do ‘certain things’ to remedy the situation, including publish a clarification and offer refunds to mislead consumers, but continued to use the descriptor ‘4G’ in advertisements until recently.

The iPad only works on ultra fast 4G networks in the US.

The Lawyer for the ACCC, Colin Golvan SC, said the “substantial” penalty would send a message to the computer industry “that such conduct will not be condoned”, reports The Australian.

But Judge Mordy Bromberg at the Federal Court today appeared to have a number of concerns over the case, and complained of not being informed of all the facts including the number of consumers affected by the “false” ads.

 

“At the moment on the agreed facts you put before me, I have no idea whether a consumer who bought the iPad, thinking it could connect to 4G but then realising that it couldn’t, has been impacted in any way.”

The Judge has yet to approve the settlement and the case is still ongoing in court today.

Previous reports indicated not a single consumers who bought the offending iPad 4G had returned the device to Apple store or reseller, despite Cupertino’s offer of a full refund.

Flick of a switch 728x90 1 Apple $2.2M Fine Dodgy iPad 4G Ads
LG HE FN Series Banners 4SQM LB 728x90 Apple $2.2M Fine Dodgy iPad 4G Ads
Banner Shyla 728x90 Apple $2.2M Fine Dodgy iPad 4G Ads
PAN1992 MWO Banners LB 728x90px V2 Apple $2.2M Fine Dodgy iPad 4G Ads
Uniden PRO 728 x 90 Apple $2.2M Fine Dodgy iPad 4G Ads
720 x 97 1 Apple $2.2M Fine Dodgy iPad 4G Ads
728x90 7 Apple $2.2M Fine Dodgy iPad 4G Ads
728x90 5 Apple $2.2M Fine Dodgy iPad 4G Ads
en us WD MyPassportSSD WEB BNR 728x90 Final Sustain V2 Apple $2.2M Fine Dodgy iPad 4G Ads
ARL0335 Arlo Pro 4 Banner 728x90 FA scaled Apple $2.2M Fine Dodgy iPad 4G Ads


YOU MAY ALSO LIKE