Apple fined in Australia for misleading iPad claims

An Australian federal court judge has fined Apple with Aus$2.25 million (US$2.29 million) for "deliberately" misleading Australian consumers about the local 4G capability of its latest iPad. Justice Bromberg also ordered Apple pay the Australian Competition and Consumer Commission $300,000 towards legal costs for the prosecution.

The company advertised the tablet as 'iPad with WiFi + 4G', despite the fact that it works on the 700MHz and 2100MHz LTE bands, and isn't compatible with Australia's only 4G network, run by Telstra and operating in the 1800MHz band.

"The understanding of Australian consumers of the term "4G'' in relation to data mobile networks is to be distinguished from that relating ot other mobile data networks and, in particular, those which have been promoted in Australia as "3G'' networks,'' Justice Bromberg said.

The Australian Competition and Consumer Commission (ACCC), which initiated the proceedings, said it was delighted with the outcome.

"The $2.25 million penalty reflects the seriousness of a company the size of Apple refusing to change its advertising when it has been put on notice that it is likely to be misleading consumers," chairman Rod Sims said.

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