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Australian Consumer Watchdog Sues Apple Over iPad Marketing

Fluffeh writes "Australia's competition regulator will today take iconic technology giant Apple to court for advertising its new iPad tablet as featuring '4G' speeds — which are not supported on Australian telecommunications networks. One of the key features of the new iPad is support for 4G speeds, however, the 4G speeds which the new iPad supports will not be available in Australia, with Apple's technical specifications page only listing it as supporting the 700Mhz and 2100Mhz spectrum bands, neither of which are being used by Australian telcos to provide 4G services. The case may be a bit shaky, though, as Apple does state in the fine print: '4G LTE is supported only on AT&T and Verizon networks in the US; and on Bell, Rogers and Telus networks in Canada. Data plans sold separately. See your carrier for details.'"

46 of 193 comments (clear)

  1. IMHO Apple is becoming a scummy advertiser by whoever57 · · Score: 3, Interesting

    It's like the release of the Ipone 4GS in the US -- the ads focused on SIRI, but when people complain, Apple then says "It's BETA". That's misleading and frankly dishonest, but probably legal in the USA.

    This appears to be just the same: advertise 4G, and in the small print, point out that you will probably never get 4G. It's dishonest.

    --
    The real "Libtards" are the Libertarians!
    1. Re:IMHO Apple is becoming a scummy advertiser by xSacha · · Score: 5, Insightful

      Uh, it's US which runs on different bands to the rest of the world.
      Europe and Asia are using Australia's bands.

      While Telstra is the only one with a 4G network right now, Optus is launching one in a month and Vodafone is soon to follow.

    2. Re:IMHO Apple is becoming a scummy advertiser by Anonymous Coward · · Score: 2, Informative

      Nobody is "clinging" to analogue TV. Analogue TV is on track for shutdown in June, just as it always has been.

    3. Re:IMHO Apple is becoming a scummy advertiser by _xen · · Score: 4, Informative

      This appears to be just the same: advertise 4G, and in the small print, point out that you will probably never get 4G. It's dishonest.

      Moreover outright dishonesty is not an element the ACCC needs to prove. The claim need not even be false, it need only be misleading

      The relevant provision in the new Australian Consumer Law which replaces the old s52 Trade Practices Act 1974 and which the legislature in its inimitable wisdom has chosen to bury in Schedule 2 to the Competition and Consumer Act 2010, reads:

      18 (1). A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

    4. Re:IMHO Apple is becoming a scummy advertiser by EvanED · · Score: 2

      You can make an argument that's a good explanation of why 4G isn't available in Australia. However, if the summary is accurate (RTFA? This is Slashdot!), Apple should get smacked down hard for their ads.

    5. Re:IMHO Apple is becoming a scummy advertiser by Dodgy+G33za · · Score: 3, Informative

      Typical bloody city dweller.

      This luddite, like a lot of luddites in this country is clinging on to analog TV because we do not and will not have a digital broadcast in our area. We are going to have to go to satellite if we want to continue to receive free-to-air.

      I am not sure why Telstra is responsible for the frequencies used to broadcast analog TV, but am happy to be enlightened.

      As an aside I can't really claim to be clinging on to analog - I have a TV aerial I set up for the Australian Open or football championships, but otherwise I am happy streaming video via mobile, which works quite nicely thanks very much.

    6. Re:IMHO Apple is becoming a scummy advertiser by whoever57 · · Score: 5, Funny

      Actually, in this case, it's not Apple's fault, which I fully expect them to stand up in court and say.

      I make a clear distinction between what is legal and what is ethical. Advertising a a 4G capability that none of the buyers will ever be able to use unless they travel abroad and then buy service is unethical. Telstra may deserve some crticism for only providing 4G on a limited range of frequencies, but that is irrelevent to the fact that the advertisements are highly misleading. Apple knew that the 4G would not work in Australia, yet they decided to advertise it anyway.

      Car analogy: car maker advertises car with 1000 mile range, except that it needs unobtanium for fuel in order to get the 1K mile range. According to you, the fault would lie with the fuel companies for not selling unobtanium.

      --
      The real "Libtards" are the Libertarians!
    7. Re:IMHO Apple is becoming a scummy advertiser by unreadepitaph · · Score: 5, Informative

      Let's have a look at 4G around around the world shall we?
      http://www.worldtimezone.com/gsm.html
      Oh look! It would appear that THE MAJORITY OF THE WORLD uses the 900/1800 GSM band.

      Apple intentionally mislead consumers, and they were warned prior to the iPads release by the ACCC that what they were doing was in breach of advertising laws.
      I've spoken to many CEO's (I work helpdesk for a private hospitals) who wanted to order the iPad and when I told them it wasn't 4G compatible in Australia they were all shocked to hear it. I would assume this is the same with many other consumers as well.

      --
      My internetting is no good.
    8. Re:IMHO Apple is becoming a scummy advertiser by xSacha · · Score: 3, Insightful

      You can easily get WiFi in your house and it is known you will need to transmit WiFi to receive it. Worst case scenario you can go to a coffee shop and get WiFi.
      But the 4G on the tablet won't receive the 4G that the local Telcos provide. If you want to use that 4G, you'll have no luck in Australia, Europe, Asia. You have to go to North America!

    9. Re:IMHO Apple is becoming a scummy advertiser by Whiney+Mac+Fanboy · · Score: 5, Informative

      which operates on a different spectrum than the 4G networks used everywhere else in the world

      WTF are you talking about? The LTE ipad uses 700, 2100 MHz bands, and according to Wikipedia's 3GPP LTE page:

      The LTE standard can be used with many different frequency bands. In North America, 700/ 800 and 1700/ 1900 MHz are planned to be used; 800, 1800, 2600 MHz in Europe; 1800 and 2600 MHz in Asia; and 1800 MHz in Australia.

      The US & Canada are the only countries in the world with LTE networks fully compatable with the ipad.

      US !=The rest of the world.

      --
      There are shills on slashdot. Apparently, I'm one of them.
    10. Re:IMHO Apple is becoming a scummy advertiser by crafty.munchkin · · Score: 2

      I like your unobtanium analogy...

      --
      ... wait, what?
    11. Re:IMHO Apple is becoming a scummy advertiser by Whiney+Mac+Fanboy · · Score: 4, Informative

      I guess the question would be... is it's Apple's responsibility to manage the wireless carriers infrastructure?

      It is Apple's responsibility to manage their advertising, ensuring that when they advertise a device is 4G compatible, that is is compatible with whatever 4G means in the country they're advertising.

      For instance, if a Swedish company was advertising a free slut with each car sold, and it turned out that all you got was the ability for the car to stop (slut means stop in swedish), you'd be.... disappointed wouldn't you? Well, this is the same thing. A company using a local definition in a foreign market to confuse the marketplace.

      Apple also claims all iPads have WiFi but if you don't have WiFi at your house, should you sue Apple for false advertising?

      This analogy is so fucking stupid that my brain has shrunk slightly upon reading it. How about this? If Apple claims a device has wifi, but it is not compatible with the local regulatory requirements for wifi, then yes, they will get sued.

      --
      There are shills on slashdot. Apparently, I'm one of them.
    12. Re:IMHO Apple is becoming a scummy advertiser by Scott+says · · Score: 2

      I see car ads everyday on TV that claim 1000 miles to the tank and then some stupid fine print I cannot read explaining that only one model in the range gets that mileage and blah blah blah. Fine print is the norm from qualifying statements found in advertising. What about the Quibids ads in Australia? "I bought an Macbook Pro for $63"... fine print on the bottom of the screen "paid actor". Could they be more misleading? Lesson: Before buying anything, make sure it works for you.

    13. Re:IMHO Apple is becoming a scummy advertiser by neonsignal · · Score: 2

      Which is why we fund the ACCC, because we aren't complete putzes.

    14. Re:IMHO Apple is becoming a scummy advertiser by Dexter+Herbivore · · Score: 4, Informative

      This is the point, and why the ACCC is suing. Apple's advertising states that 4G is a feature even though it's unavailable in Australia.

    15. Re:IMHO Apple is becoming a scummy advertiser by jimi1x · · Score: 3, Interesting

      A disclaimer in the T&S is not sufficient under Australian advertising laws. Under Australian law the product must work as the consumer expects, no the other way around. So a consumer seeing an iPad 3 with 4G would reasonably expect it to work on a 4G network. Putting something in the fine print does not alleviate a company of their responsibility. From what I understand our consumer laws over here in Oz are much fairer to the consumer than they are in the US.

    16. Re:IMHO Apple is becoming a scummy advertiser by rtb61 · · Score: 2

      The more accurate statement is specific Apple advertising for a product they are selling is inaccurate.

      The point to be careful about, is every single ad must be accurate, not just the web site targeted at Australian users, no just major press releases, not just a particular mailing drop, but every ad via every source, be it television, radio, letter box drop, magazine and, newspaper.

      Penalties should be applied for all corporate deceit. For the ACCC to initiate a case generally all that is required is a sufficient number of complaints and evidence.

      --
      Chaos - everything, everywhere, everywhen
    17. Re:IMHO Apple is becoming a scummy advertiser by ATMAvatar · · Score: 5, Insightful

      Whenever there is a global standard and a question on whether the US is following it, the safest best is that the US isn't.

      --
      "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
    18. Re:IMHO Apple is becoming a scummy advertiser by arisvega · · Score: 3, Insightful

      Actually, in this case, it's not Apple's fault ..

      Actually, it is.

      The case may be a bit shaky, though, ..

      No it mightn't. It looks pretty straightforward to me. See below.

      as Apple does state in the fine print: '4G LTE is supported only on AT&T and Verizon networks in the US;

      Oh I get it- so as long as it does state it in the "fine print", then Apple et. al. are allowed to perform misleading advertizing? Or is there another point here that I am missing?

      Sorry about the tone, but I tend to be overenthousiastic when consumer protection laws bite megacorps in the arse.

      --
      The three laws of thermodynamics:(1) You can't win. (2) You can't break even. (3) You can't even quit.
    19. Re:IMHO Apple is becoming a scummy advertiser by DJRumpy · · Score: 2

      Except for the fact that it's advertised right on the package that in Australia, only 3G speeds will be available. The information is listed on the outside of the box above the model number according to iFixit:

      http://guide-images.ifixit.net/igi/Kdi1XOouIp1VDAoN.medium
      http://www.ifixit.com/Teardown/iPad-3-4G-Teardown/8277/1

    20. Re:IMHO Apple is becoming a scummy advertiser by Anonymous Coward · · Score: 3

      Except it's a single retailer that puts those stickers on, and "big sticker you see after you bought the gadget" barely counts as advertised when compared with "proudly presented on apple.com.au with tiny footnote saying (only in US and Canada)".

    21. Re:IMHO Apple is becoming a scummy advertiser by ta+bu+shi+da+yu · · Score: 2

      No.

      --
      XML is like violence. If it doesn't solve the problem, use more.
  2. Does fine print supercede large print? by hawguy · · Score: 5, Interesting

    The article says that the fine print may make the case shaky:

    The case may be a bit shaky, though, as Apple does state in the fine print: '4G LTE is supported only on AT&T and Verizon networks in the US; and on Bell, Rogers and Telus networks in Canada. Data plans sold separately. See your carrier for details.'"

    But why can the fine print supercede what's in the main ad? How can an ad for a 4G device in Australia be legal if that device will never be able to work in Australia? They can list the 4G for USA and Canada on the specs page. As another example, if an ad screams "Unlimited 4G data!!!" in large print, they shouldn't be able to write "Unlimited plans subject to data caps that we won't reveal to you and throttling back to speeds slower than 2G speeds" down in the fine print. If it says "Unlimited" in the large print, then it really should be "Unlimited". Fine print shouldn't be able to contradict the main body of the ad.

    1. Re:Does fine print supercede large print? by robbak · · Score: 5, Informative

      The Australian courts have answered this many times: It does not. Fine print does not even trump customers logical expectations.

      The only thing that may save Apple is that the boxes have quite a large sticker on the back that states that the 4G capability is not compatible with any Australian network. Assuming that Apple has not advertised 4G in any Australian-targeted advertising, they should be OK.

      If they have, then fines and forced offers of refunds will be in their future.

      --
      Prediction for end of Universe #42: Fencepost error in Quantum_bogosort.cpp
    2. Re:Does fine print supercede large print? by xSacha · · Score: 3, Informative

      I thought that sticker was added by Telstra. You only see that if you buy the iPad directly from Telstra. Any other retailer and you won't have a clue.

    3. Re:Does fine print supercede large print? by whoever57 · · Score: 5, Informative

      Assuming that Apple has not advertised 4G in any Australian-targeted advertising, they should be OK.

      Read this page and then note the "au" in the URL, not also the prices in Austalian dollars. It is clearly targeted to Australia and it highlights 4G capability.

      --
      The real "Libtards" are the Libertarians!
    4. Re:Does fine print supercede large print? by Splab · · Score: 3, Informative

      The Danish watchdog is also preparing suit against Apple for the exact same - here in Denmark, the sticker definitely wont be enough.

    5. Re:Does fine print supercede large print? by Anonymous Coward · · Score: 3, Interesting

      Oh it gets even better than that, check out this apple page - which not only says "4G" but also lists Optus, Telstra, and Vodafone as offering compatible data plans.

    6. Re:Does fine print supercede large print? by bloodhawk · · Score: 3, Insightful

      The fine print doesn't make the case shaky at all. In Australia if your ad can be misconstrued as advertising something they don't provide, then no amount of fine print, small print, eula or any other disclaimer they want to add will excuse them from the false advertising laws. They are there to protect consumers from being tricked into making a purchase based on misleading advertising and the litmus test is whether a reasonable person could be fooled into thinking that buying a IPAD 3 would give them 4G access in Australia, given the ads that is a pretty definite yes.

    7. Re:Does fine print supercede large print? by Terrasque · · Score: 2

      There are grumblings about it here in Norway too. Same story. Apple homepage, tooting 4g, showing logos of norwegian operators beside it. And none of the operators support that 4G standard.

      --
      It's The Golden Rule: "He who has the gold makes the rules."
    8. Re:Does fine print supercede large print? by Barny · · Score: 2

      That is still considered 'bait advertising'.

      The ACCC really don't care about fine print at all, they can, will and HAVE shut companies down simply for saying misleading things in big print and then relying on fine print to save them.

      --
      ...
      /me sighs
    9. Re:Does fine print supercede large print? by T-Bone-T · · Score: 3, Funny

      My iPhone doesn't support 4G but it "supports" it because AT&T renamed 3G to 4G.

  3. Media Watch by Anonymous Coward · · Score: 2, Interesting

    ABC's Media Watch mentioned this as part of a larger look into media coverage of the new iPad release. Summary doesn't quite make clear that 4G is available in Australia, it's just that the iPad won't support it.

  4. Re:Silly by inflex · · Score: 4, Informative

    We do have 4G here in Australia, it's just on a band that the Apple iPad doesn't support.

  5. Re:Silly by PigIronBob · · Score: 5, Informative

    The Crux of the matter here is that 4G is available in Australia, Apple just can't be bothered making the iPad compatible with the Australian Network, yet advertises as if it were, that is false advertising in anyones book.

    --
    You never catch me alive
  6. If the ad was in "Quadriplegic's Monthly"... by robbak · · Score: 2

    ... then, maybe. The target of the advertisement matters in cases such as these.

    --
    Prediction for end of Universe #42: Fencepost error in Quantum_bogosort.cpp
  7. What the hell? by msobkow · · Score: 2

    With all their money in the bank, Apple couldn't afford to produce market-specific ads for different countries?

    I hope they get their asses sued into the ground for penny-pinching in such a fashion. Given the profitability of the damned things, they sure as hell can afford to use regional advertising!

    --
    I do not fail; I succeed at finding out what does not work.
  8. Re:Why sue only Apple? by xSacha · · Score: 2

    Any phones sold as 4G in Australia are LTE phones.
    We don't have that problem that US has.
    Those phones you see like 'MyTouch 4G' or whatever actually have an entirely different name in EMEA and Australasia.

  9. Re:Wtf frequency limits? by morcego · · Score: 3, Insightful

    Even if the radios can, the main problem is the antenna. Specially if you need power efficiency, which is the case of mobile devices. Losing 60% of your output power due to antenna impedance difference is not something you can afford to have. And that is only one of the issues, the first one that poped in my head, actually. I'm sure there are many others.

    --
    morcego
  10. NZ watchdog receives complaint over iPad 4G by Anonymous Coward · · Score: 3, Informative

    The Commerce Comission (equivalent of the ACCC in Oz, or the US FTC) in New Zealand is also considering the same action against Apple (and there are exactly zero 4G networks here)
    Commerce Commission investigating Apple iPad 4G adverts after Complaint

  11. Re:Who defines what "G" some thing is? by snookums · · Score: 4, Informative

    The ITU

    Indeed. And according to the ITU, HSPA+ is "4G" and you can use the iPad 4G on Telstra's HSPA+ network, thus achieving a "4G" connection.

    The problem stems from the fact that in Australia only Telstra's LTE network is advertised as "4G", and it is this network that the iPad is not compatible with. So, technically you can get a 4G connection on the new iPad, but Apple may be in trouble if it is determined that their advertising leads customers to believe that the device is compatible with the Telstra-advertised "4G" network.

    --
    Be careful. People in masks cannot be trusted.
  12. Re:Silly by batkiwi · · Score: 4, Informative

    By the rest of the world do you mean "The USA" or by the rest of the world do you mean "The rest of the world" ?

    Because in Europe, Australia, and Asia 1800 is the standard frequency, with 2600 and 800 being also considered.

    In the USA it's 700 and 1700/1900.

  13. Re:Just Works(tm)* by Anonymous Coward · · Score: 2, Informative

    Your forgot to add that when it does not work, that it is a major feature.

  14. Re:Silly by flimflammer · · Score: 2

    The US & Canada isn't the "rest of the world," dude. We (the US and Canada) the ones who chose different bands from the actual rest of the world. Apple shouldn't be advertising 4G in Australia if it can't deliver 4G to Australia. It's entirely deceptive.

  15. Re:Who defines what "G" some thing is? by mjwx · · Score: 3, Informative

    If I had a company that made the relevant toys, could I advertise them as "5G", or even "6G"?

    Who decides what qualifies?

    The ITU (International Telecommunications Union), but telco's have co-opted this to the point that the ITU has said, there will be no 5G.

    The original ITU 4G specification was 100 Mbps fixed and 40 Mbps mobile, not even LTE can guarantee this, LTE Enhanced (Advanced, cant remember which) would have been the first but US telco's wanted to brand HSPA+ as 4G and the ITU capitulated.

    BTW, Ipads and Iphone dont even support HSPA+

    --
    Calling someone a "hater" only means you can not rationally rebut their argument.
  16. "USA + Canada" = "around the world"? by bittersdotter · · Score: 2

    It's not 100% clear that the regulator will have a case on the specific point mentioned-- it is factually correct that the iPad connects to 4G networks. Whilst on one level you might argue that this is playing on public ignorance as far as the *domestic* market is concerned, the iPad is clearly also a product specifically designed with travel in mind. So advertising on the basis of a feature that works somewhere internationally, albeit not domestically, could be argued to be legitimate and that it is up to the consumer to recognise that some features will be relevant specifically to international use.

    [If you do decide that this advertising is misleading enough to censor, then you also have the problem of where you draw the line. What about a camcorder advertised as having a "500x digital zoom", but only a ~500 pixel vertical resolution?-- like 4G connection compatibility in Australia, the feature advertised is technically useless but the claim is still arguably technically accurate. If a computer is advertised as having a quad core processor, is the onus on the consumer or the advertiser to be aware/point out that little software will actually benefit from all 4 cores...?]

    On the other hand, you could perhaps get into a semantic argument about whether "around the world" is a misleading label for what actually amounts to "the USA and Canada".