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In Australia, Apple Fined $2.5 Million For '4G' Advertising Claims

Posted by timothy on from the we-thought-this-island-was-for-crime dept.

Whiney Mac Fanboy writes "Apple has agreed to pay a $2.25 million (AUD) fine (along with 300k legal costs) to the Australian Competition & Consumer Commission for misleading advertising. Apple misrepresented their iPad product as being a '4G' device, when in fact they're only compatible with a very small percentage of 4G networks around the world. The Age online has the full story."

3 of 154 comments (clear)

  1. Re:It's not finalized yet by barvennon · · Score: 5, Informative

    Here is the cite from "The Australian". http://www.theaustralian.com.au/australian-it/judge-wants-data-on-wealth-before-he-rules-on-apple/story-e6frgakx-1226389535095

  2. "Apple had offered to provide full refunds" by cpu6502 · · Score: 5, Informative

    Funny how these markets and lawyers and politicians always leave-out relevant facts. "Alan Archibald, QC, acting for Apple, told the court it was irrelevant how many iPads had been sold or returned because Apple had offered to provide full refunds, so there was no loss to customers. "What conceiveable damage might there be?", he said."

    The guy forgets that Apple only offered these refunds AFTER the government started prosecuting them. That alone is reason enough to fine them, because had the government not existed, then Apple would have happily lied with its "iPhone 4G" campaign and refused to refund the cash to the ripped-off Australians. (Also refunding the phone doesn't mean customers are exempt from the 2-3 year contracts. Now they are phoneless, but still stuck with a bill.)

    --
    My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
  3. Re:a little understated by Anonymous Coward · · Score: 5, Informative

    Australia has 4G; quite an extensive LTE network in fact and one that can be used with most new Android phones, it's just that we don't yet use the frequencies that only the USA uses and that Apple solely targeted. Europe is in the same boat, they have 4G but don't use the USA frequencies.

    Apple clearly said "* You can have 4G if you are in America" however the * statements that would be allowed in America are not allowed here. Disclaimers in Australia cannot, under law, substantially change the headline of an advertisement. That is, you can't say 4G Capable in the headline then disclaim it as "Only in America" in the Australian market.

    I'm surprised Apple didn't use an LTE chip with a larger number of bands. Restricting it to AT&T frequencies seems counter-productive.