Australia Allege Ads Misleading – Apple Offers Refund

Apple finds itself in legal hot water again, this time with the Australia Competition and Consumer Commission (ACCC), which has alleged that Apple promoted its new third generation iPad’s 4G capabilities, with a misleading ad, that led Australian buyers to believe that the iPad with Wi-Fi +4G can, with a SIM card, connect to a 4G mobile data network in Australia.

The ACCC wants Apple to disclose the fact that the new IPad cannot connect to 4G networks within Australia. Apple today agreed to display warning signs on its website and places where the gadget was being sold, clarifying that the new iPad’s 4G model won’t provide 4G connectivity on Australian networks.

No carrier in Australia operates an LTE network that the iPad is able to connect to. The frequencies used by the Australian carriers are different to the ones the iPad supports. Some users feel that Apple is not misleading anyone. The device is 4G capable, but before buying one should check compatibility with the carrier. Australia does not have it, hence the problem.

The question of misleading could be on shaky ground for Australia, for the fine print on the ad does say, ‘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.'”

However, it seems that Australia isn’t the only nation to object to Apple’s 4G claim in its advertisements. Sweden and UK are also launching investigations to gauge if Apple’s advertisements were indeed misleading and unethical.

A lawyer of the company, said, that Apple will contact vide email, all owners of the new device and offer them a refund. Inspite of the refund offer the case seems to be moving ahead. Refunding may not be the only loss that the company may have to bear; ACCC has sought financial penalties, corrective advertising measures and a possible injunction on the device in the final orders.

Inspite of the controversy the popularity of the iPad shows no sign of waning, Apple having registered sales of around 3 million tablets the opening weekend.

Apple has a generous refund policy. But it seems that there will not be too many people banging on its doors seeking a refund.