If you’ve been following the ‘false advertisement’ suit that has been brought against Apple since the release of the new iPad in Australia, you’ll know that the country investigated claims that Apple intentionally misled buyers by claiming that their third-generation tablet supports the 4G network when it does not.
Although the tech giant made changes to their website, offered additional clarification during the purchasing process and even promised to refund customers who felt they received a product that didn’t meet their expectations, in the end, they still agreed to pay $2.25 million in penalties and contribute $300,000 toward the Australian Competition and Consumer Commission’s (ACCC) legal fees.
Apple’s new iPad with Wi-Fi +4G is not actually compatible with Australia’s 4G network. The new iPad’s global frequency is designed to receive data though international 4G networks that run on 700MHz and 2100MHz, but Australia’s 4G network, Telstra, runs on an 1800MHz frequency. According to The Australian, ACCC representative Colin Golvan SC said the heavy penalty would send a message to the computer industry that “such conduct will not be condoned.”
Apple’s settlement deal has yet to be approved by Australian Federal courts. According to the Herald Sun, Judge Mordy Bromberg has concerns about the lack of detailed information that he has received so far. Bromberg wants to know how many third-generation iPads were sold, the corporate structure of Apple Australia and the detriment suffered by consumers who believed the new iPad would work on a 4G mobile network.
Hopefully this will end the chapter on Apple’s egregious mistake regarding its promotion of a 4G-compatible tablet in a country where it is not. Earlier news shows that the UK has also looked into reports of false advertising in a similar incident. This settlement may prompt that country to pursue Apple for some form of compensation as well.