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Thread: Court Approves $2.29 Million Fine Against Apple for Misleading 4G iPad Marketing

  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default 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

    Twitter: @AkshayMasand

  2. #2
    I think it should probably be a lot large fine as this was a very misleading statement from what I have seen from my viewpoint here in the U.S.

    Of course for us, it really is a 4G device, but still.....

  3. #3
    .. so youre saying if i cant read fine text or cant understand when someone talks likethistogetallthesideeffectslistedintheleastamou ntoftimepossible i can sue them!? thats pretty biased they just realize apple has a lot of money... btw where would you go to buy the ipad without seeing that it doesnt allow you to get the 4g one if you arent in u.s. as i recall you cant order an ipad from a commercial like paper view..

  4. #4
    Quote Originally Posted by cmwade77 View Post
    I think it should probably be a lot large fine as this was a very misleading statement from what I have seen from my viewpoint here in the U.S.

    Of course for us, it really is a 4G device, but still.....
    It really isn't even a 4G device for us. Our "4G" speeds cannot match that of true 4G/LTE speeds.

  5. #5
    How can they be sued for describing something as '4G'? The term doesn't even really mean anything. You might as will describe it as 'hot' or 'cold'.

    Does the IMT-Advanced even describe 4G? That's the official standard which is supposed to describe this.

    They could have avoided the whole controversy by just asterisking their advertising with a YMMV footnote.

    Although, not telling people that it won't work with any WiMAX or LTE system in Australia is a little ******.

  6. #6
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    Apple advertised this as 4G device, it does not matter what is printed in the fine print it is already a false advertisement right off the bat. By having it in the fine print stating that it is really 3G at 4G speed when available, that is bait and switch. Get people to come in for 1 thing and sell them another. Apple is guilty of wrong doing either way, take your pick!!

    I know some of you think Apple can do no wrong, thank god the law is not like you!
    Last edited by unison999; 06-21-2012 at 12:41 PM.

  7. #7
    Obviously apple can't claim one thing and provide another, but as an Aussie I barely took notice to the whole 3G/4G title being that our networks can't even provide 4G.

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