| Apple fined $2.29m over Australian ‘4G’ iPad |
SYDNEY Apple was on Thursday fined A$2.25 million ($2.29 million) for “deliberately” misleading Australian consumers about the local 4G capability of its latest iPad.
The tech giant was also ordered to pay A$300,000 in costs by the Federal Court in a case brought by regulators, who said the penalty sent a message to global companies that there were consequences for breaching the law.
Justice Mordy Bromberg found that Apple misled people with claims in its advertising implying that the ‘iPad with WiFi + 4G’ could connect with fourth generation cellular networks in Australia, when it could not.
The judgement ruled that the company engaged in conduct liable to mislead the public and contravened Australian consumer law.
“The conduct concerned was deliberate and very serious,” Bromberg said.
“It exposed a significant proportion of Australian consumers of tablet devices to a misleading representation.”
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.
“This decision should act as a renewed warning that the ACCC will continue to take action against traders who take risks in their advertising, regardless of their size.”
Apple offered in March to refund customers who felt they had been duped, and to publish a clarification about the popular tablet’s capabilities.
The product is now advertised outside North America as ‘Wi-Fi + Cellular’ — a change that came into effect on May 12 — with a clear caveat on its Australian site that “it is not compatible with current Australian 4G LTE and WiMax networks.”
The iPad’s 4G capabilities are supported by some networks in the US and Canada.
Matthew Rimmer, an expert in intellectual property at the Australian National University, said Apple had been “careless”.
Agence France-Presse
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