Customers line up outside an Apple store in
Sydney on March 16, 2012. Apple agreed Friday to a Aus$2.25 million
(US$2.22 million) fine for misleading Australian customers about the
local 4G capability of its next-generation iPad, in a case brought by
regulators.
Apple agreed Friday to a Aus$2.25 million
(US$2.22 million) fine for misleading Australian customers about the
local 4G capability of its next-generation iPad, in a case brought by
regulators.
The Australian Competition and Consumer
Commission (ACCC) told the Federal Court that the US tech giant had
agreed to the penalty for implying in advertising that the 4G function
on its latest iPad worked in Australia.
Apple offered in March to refund Australian
customers who felt they had been misled by the "iPad with WiFi + 4G"
promotion and publish a clarification about the popular tablet's
capabilities after the ACCC took it to court.
Though the iPad's 4G function only works on
networks in the United States and Canada it had been widely promoted as
one of the tablet's features globally, which the ACCC said amounted to
false advertising.
It is now advertised outside North America as
"Wi-Fi + Cellular", with a clear caveat on its Australian site that "it
is not compatible with current Australian 4G LTE networks and WiMax
networks."
Customers line up outside an Apple store in
Sydney on March 16, 2012. Though the iPad's 4G function only works on
networks in the United States and Canada it had been widely promoted as
one of the tablet's features globally, which the Australia said amounted
to false advertising.
The matter was due to go to a full trial this
week but ACCC lawyer Colin Golvan said Apple had agreed to pay the
Aus$2.25 million fine and the commission's legal costs as part of an
out-of-court settlement.
Golvan said the "substantial" penalty would
send a strong message to the booming smartphone and tablet industry that
"such conduct will not be condoned", according to a report of the
hearing in The Australian newspaper.
But judge Mordecai Bromberg refused to make
an official court order until he had the details of how many iPads had
been sold and were returned under the refund offer, along with
information about the extent of the 4G advertising.
"The parties put forward proposed settlement
and consent orders, however His Honour requested further information to
be provided for the consideration of the court, which will happen next
week," an ACCC spokesman told AFP.
Apple agreed to provide a confidential brief
to the judge by June 13, with a final decision on the penalty and
settlement of the case to be handed down at a later date.
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