Court Approves $2.29 Million Fine Against Apple for Misleading 4G iPad Marketing
Both Apple and the Australian Competition and Consumer Commission reached a settlement earlier this month and had been awaiting court approval for the issue regarding false 4G advertising on the iPad. Federal Court Justice Mordy Bromberg recently approved a fine, which amounts to a total of $2.29 million (U.S.) according to Australian news source, IT News
The ACCC seemed to have an issue with Apple’s promotional materials for the lunch of the third-generation iPad in Australia in March. It was being argued that advertisements for the 4G version of the device misled customers
into thinking that the device would work on Long Term Evolution (LTE) networks in Australia. Though Apple initially defended its actions
, it ended up caving and rebranding the device to avoid future misunderstandings. After rebranding, it began to call its 4G-capable tablet the “iPad Wi-Fi + Cellular,” dropping the 4G claim from the product name. Apple now asserts that the device “supports very fast cellular networks,” while warning consumers that it will not work with Australian 4G LTE networks.
Due to its time zone, Australia was the first country to sell the iPad when it hit the market on March 16. Similar to many other locations, the device became an immediate hit and was in short supply for weeks after the launch. That being said, we’re pretty sure Apple has learned its lesson regarding the wording they chose for the branding of the device and going forward, Apple and everyone else will be more careful about how they brand their products in order to avoid the possibility of a hefty fine.
Source: IT News