Apple has bowed to pressure from Aus watchdog and admitted iPad 4G claims are a dud.

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This follows a hearing in Melbourne Federal Court today where the consumer watchdog, ACCC, filed a complaint against Apple accusing it of “misleading” customers by branding its new iPad as 4G in Australia, when it doesn’t even work on Telstra 4G network.

Lawyers for the Australian Competition and Consumer Commission alleged that Apple’s promotion of the new “iPad with WiFi + 4G” broke consumer law because it implies the sim card enabled tab can connect to the up-to five times faster 4G mobile network, when this is not the case in Australia.

Apple has now offered refunds for latest iPad, which starts at $679 for the 16GB model, to disgruntled Aussie customers.

Read: New iPad Flop On Telstra 4G

The iPad maker has also agreed to publish a clarification that states the product supports ultra-fast 3G mobile networks but not 4G, reports ABC.

It is currently engaging in discussions with the watchdog and will come back to the court later today.

“Consumers who have purchased or are considering purchasing a “iPad with Wifi + 4G” should ensure that they have a proper understanding of the mobile data networks which this iPad can directly access by a SIM card,” the watchdog warned.

Read: Apple’s New 4G iPad “Misleading,” Alleges ACCC