Apple fined $2.29 million in Australia over iPad 4G claims

The launch of the new iPad earlier this year has resulted in Apple getting hit with a big fine in Australia over the iOS tablet's 4G speed claims. AFP.com reports that Justice Mordy Bromberg of the country's Federal Court slammed Apple with a fine that totaled $2.25 million Australia dollars ($2.29 million in US dollars).

Apple previously claimed that the new iPad, released in March, had 4G speeds when it was advertised in Australia. However, the truth was that the iPad cannot actually connect to the only 4G wireless network in that country because the network operates on a frequency of 1800MHz; the new iPad's LTE 4G hardware works on frequencies of 700MHz and 2100MHz.

Previously, Apple said it would email all iPad owners in Australia and offer them refunds if they felt they were mislead by the 4G speed claims. It has also changed the branding of the iPad to show it is "Wi-Fi + Cellular", rather than 4G. However, in his ruling today, Justice Bromberg said, "The conduct concerned was deliberate and very serious. It exposed a significant proportion of Australian consumers of tablet devices to a misleading representation."

In addition to the fine, Bromberg also ruled that Apple must pay an additional $300,000 in Australian dollars to deal with court costs.

Source: AFP.com

Report a problem with article
Previous Story

IE 10 default "Do Not Track" feature under attack by advertisers in crappy video

Next Story

Blizzard offers Diablo III refunds to some Korean players

23 Comments

Commenting is disabled on this article.

So iPad doesn't actually come with 4G hardware in them? Why haven't they been fined anywhere else yet since this is blatant false advertisement. Either they come with a 4G hardware or they don't. Glad I only got the Wifi version though. I dodged a bullet there. I would have been ****ed had I spend that extra money and there not been any 4G hardware in the device.

ILikeTobacco said,
So iPad doesn't actually come with 4G hardware in them? Why haven't they been fined anywhere else yet since this is blatant false advertisement. Either they come with a 4G hardware or they don't. Glad I only got the Wifi version though. I dodged a bullet there. I would have been ****ed had I spend that extra money and there not been any 4G hardware in the device.

it comes with an LTE chipset, however, I think the lawsuit was based on the fact the chipset only supports certain frequencie ranges, of which Australia doesn't use

700MHz is used in the USA as one of the main LTE ranges, AUS uses 1800MHz, the chip doesn't support that frequency though

Why are people assuming that Apple did this intentionally? It's more likely an honest mistake.
Forking over that money and offering refunds sounds more than reasonable to me.

Astra.Xtreme said,
Why are people assuming that Apple did this intentionally? It's more likely an honest mistake.
Forking over that money and offering refunds sounds more than reasonable to me.

What the heck are you smoking. How do you make such a mistake?
They sold a North American iPad in Australia that uses North American carrier bands. How in the hell did they ever expect it to work in another country?

If you make a 3G or 4G device, you have to program them to work on a specific frequency and every country is very different. So explain then Mr Honest Mistake, how the heck do you ship North American iPad's to Aussie where they carrier bands are not supported by the countries LARGEST carrier?

I mean this is equal to GM taking a car made in Detroit and send it to Germany and the gasoline in Germany was not the same as here and some poor sucker who just spent $30k for his car goes and fills it up with gas, and the car doesn't start.

Again, how do you make such a mistake?
Thats like telling your wife, honey I made a mistake and went home with another woman. I was drunk honey, I thought it was you. Come on man...at least try to be real.

Astra.Xtreme said,
Why are people assuming that Apple did this intentionally? It's more likely an honest mistake.
Forking over that money and offering refunds sounds more than reasonable to me.
It was not an honest mistake, it was purposefiul ignorance. Apple found out the hard way that not all their fans are stupid. And what they paid was chump change.

And of course they should have to replace the device or give a full refund. They F'd up...if you F'up you should pay up.

It's hitting Apple where they deserve to be hit, in the pocket. The deliberately falsely advertised the iPad as having 4G speeds in Australia so good on the Australian legal system for showing Apple that they aren't above the law.

neo158 said,
It's hitting Apple where they deserve to be hit, in the pocket. The deliberately falsely advertised the iPad as having 4G speeds in Australia so good on the Australian legal system for showing Apple that they aren't above the law.
Except it's like issuing a $100 parking ticket to a millionaire.

Elliott said,
Except it's like issuing a $100 parking ticket to a millionaire.

True, but it might make them think twice before using false advertising!!

neo158 said,
It's hitting Apple where they deserve to be hit, in the pocket. The deliberately falsely advertised the iPad as having 4G speeds in Australia so good on the Australian legal system for showing Apple that they aren't above the law.

this is hitting them in the pocket how? that's just change to them, thye will just laugh that fine off

The fine is not going to hurt the pocket but the bad publicity bringing attention to the fact that they deliberately tried to mislead customers and believe that they are above the law is going to hurt them more.

Simon- said,
The fine is not going to hurt the pocket but the bad publicity bringing attention to the fact that they deliberately tried to mislead customers and believe that they are above the law is going to hurt them more.

the average user wont care, they will still want to be a follow the trend hipster image

neo158 said,

True, but it might make them think twice before using false advertising!!

Question...if you were doing 100mph on the highway, and the cop who pulls you over says, since you haven't had a ticket in your whole driving history, I will let you off with a warning. Will that prevent you from speeding again?

TechieXP said,

Question...if you were doing 100mph on the highway, and the cop who pulls you over says, since you haven't had a ticket in your whole driving history, I will let you off with a warning. Will that prevent you from speeding again?

I wouldn't be speeding anyway so the question is irrelevant!!!

They offered to provide refunds, that is all they should be accountable for. There were no damages exceeding the purchase price of the device.

RichardK said,
They offered to provide refunds, that is all they should be accountable for. There were no damages exceeding the purchase price of the device.

Robotic reply. It's false advertisement. They lied. Apple is as morally vacant as most other corporations.

Tempest said,

Robotic reply. It's false advertisement. They lied. Apple is as morally vacant as most other corporations.

Robotic reply? I am a robot?

THE ONLY DAMAGE is the cost of the iPad. Apple offered refunds, so there are NO DAMAGES.

It's not like someone lost their life.

RichardK said,
THE ONLY DAMAGE is the cost of the iPad. Apple offered refunds, so there are NO DAMAGES.

totally irrelevent - Apple were well aware that their ipad would not work on the 4G network in Australia, however they advertised that it would, knowing well that was false advertising.

They duped the Australian public.

I just wish Juliar Gillard would be fined $2.2b for lying about not introducing a carbon tax.