Apple fined $2m over misleading claims
Apple has been ordered to pay $2.25million after misleading their consumers by claiming that their latest iPad would be compatible with the 4G network in Australia. The company falsely advertised that the iPad with WiFi + 4G could be directly connected to the Telestra LTE mobile data network in Australia. The Australian Competition and Consumer Commission (ACCC) took Apple to court in March after the product had been advertised for two months.
Apple was made aware of the fault previous to this, as ACCC Chairman Rod Sims said in a statement: “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.”
Justice Mordecai Bromberg of the federal court also ordered Apple to pay $300,000 for breaching the Australian consumer law and described the misleading advertising as “serious and unacceptable”.
Bromberg further stated that: “The most concerning aspect of Apple’s contravention […] is the deliberate nature of its conduct”.
Apple has offered a refund to all its buyers and will warn new customers that it is not compatible with the current 4G LTW networks and WiMAX networks.
Line Elise Svanevik