ACCC takes legal action against “misleading” iPad 4G claims

Wednesday 28 March 2012 @ 9.06 a.m. | Corporate & Regulatory

The ACCC announced today it would file an application against Apple in Melbourne’s Federal Court, saying the technology giant is misleading customers over its new iPad. The ACCC is seeking an injunction to sales, as well as “pecuniary penalties, corrective advertising and refunds to consumers affected.”  

Customers queued around the block at Apple’s Sydney store on March 16 to pick up the newest iPad, which was advertised as “iPad Wi-Fi + 4G.” However, the ACCC claims that this advertising is misleading to consumers, because the device does not connect to any 4G networks in Australia.

While Australian 4G LTE networks operate on the 1800MHz frequency, the iPad’s 4G feature operates on the 700MHz and 2100MHz frequencies, currently only available in the US and Canada. While this might change in the future as local carriers expand their offerings, for now it means that 4G connectivity is not available for Australian customers.

In their full press release, the ACCC alleges breaches of sections 18, 29(1)(a), 29(1)(g) and 33 of the Australia Consumer Law (ACL), and advises that “consumers who have purchased or are considering purchasing an “iPad with WiFi + 4G” should ensure that they have a proper understanding of the mobile data networks which this iPad can directly access by a SIM card.” 

Changes to Competition and Consumer legislation can be tracked, compared and accessed at any point in time with our Competition and Consumer Point-in-Time Service. Contact TimeBase for a free trial.