Apple Fined for Misleading New iPad Advertising Claims
In Australia, Judge Mordecai Bromberg ruled that Apple has breached consumer laws when it falsely advertised its newest iPad as "Wi-Fi + 4G" compatible. The new iPad could not connect to Telstra's 4G broadband network. Telstra is Australia's leading telco provider.
According to the report, Apple was well aware that its new iPad would not in fact connect to Telstra's 4G network but nevertheless continued to advertise it as "Wi-Fi +4G" compatible up until the middle of May.
"Apple does not seek to deny the deliberateness of its conduct and there are no facts before me which seek to excuse or explain the conduct, other than that the conduct occurred at the behest of Apple's parent company," Judge Bromberg said in his judgment.
Apart from being fined over $2 million, Apple has also agreed to offer refunds to customers who bought the new iPad earlier this year and has since taken measures on their Australian website to ensure that customers are not confused.
In any case, $2 million is small change to Apple, who, in the last quarter, reported a profit in excess of $11 billion. Furthermore, while the lack of 4G support is disappointing, it is unlikely to dampen sales of the new iPad, which has been very well-received throughout the world.
Source: The Australian