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Apple Brought to Australian Court for ‘False Marketing’

The ACCC pursues court action over Apple's false 4G claim for its newest iPad.

Anya Krenicki
April 26, 2012

Overview

Earlier this week, the Australian Competition and Consumer Commission (ACCC) continued its court battle versus Apple; the controversy has been waging since the March release of Apple's latest iPad. Despite product advertising that markets the new iPad as equipped with "Wi-Fi + 4G", it has proven incompatible with Australia's 4G network. As such, the ACCC has asserted that Apple is currently engaging in false marketing and should change the title of the iPad (formally known as the iPad/4G) when it is sold locally.

According to the SMH, Apple and the ACCC met on April 16 in Sydney at a mediation session which resulted in "no resolution". The pair were set to meet later that day in Melbourne for a directions hearing to determine the course of action going forward.

As of right now, Apple has agreed to refund Australian customers who bought the new iPad under the illusion that they could utilise its 4G network. The company has also posted signage is stores where the device is sold to warn customers of its lack of 4G. The ACCC, however, is still pushing for an official device name change.

This case could prove monumental to Apple, the technology company giant which has established a remarkably reputable name for itself. Not only will a court case loss force Apple to admit the shortcomings of one of its most-prized products, but it may set a precedent for how Apple markets is products in different parts of the globe.

Already, in the UK, the advertising standards group ASA has begun exploring similar consumer complaints regarding the iPad's 4G capabilities.


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