Apple Pty Ltd penalised $2.25 million for misleading “iPad with WiFi + 4G” claims

21 June 2012: Following action taken by the Australian Competition and Consumer Commission, the Federal Court has ordered Apple Pty Ltd (Apple) to pay $2.25 million in civil pecuniary penalties for misleading advertising in relation to the promotion of its “iPad with WiFi + 4G” which has been found to have contravened the Australian Consumer Law.

Apple promoted the “iPad with WiFi + 4G” in Australia from 8 March to 12 May 2012 on its website, its online store and in its retail store.  Apple resellers also promoted the “iPad with WiFi + 4G” online and in their stores using promotional materials supplied by Apple.

However, the “iPad with WiFi + 4G” could not connect to any networks which have been promoted in Australia as 4G networks, in particular Telstra’s LTE network.

“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,” ACCC Chairman Rod Sims said.

“The Federal Court has again recognized the need to protect consumers from misleading advertising in the telecommunications and related sectors.  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.”

Full story here.

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