Bloomberg News

Apple Accused of Misleading Australian Customers With 4G Claims

March 27, 2012

Apple Inc. (AAPL:US) misled customers in Australia with claims the new iPad connects to 4G networks, when that’s not the case, the competition regulator said.

The Australian Competition & Consumer Commission said in a statement today it will seek court orders in Melbourne tomorrow that will include injunctions, monetary penalties and refunds to customers. Fiona Martin, an Apple spokeswoman in Sydney, didn’t immediately respond to an e-mailed request for comment.

“The ACCC alleges that Apple’s recent promotion of the new ‘iPad with WiFi + 4G’ is misleading,” the regulator said in a statement today. “It represents to Australian consumers that the product ‘iPad with WiFi + 4G’ can, with a SIM card, connect to a 4G mobile data network in Australia, when this is not the case.”

The new iPad, advertised as 4G compatible, uses the 700 megahertz and 2,100 megahertz frequencies for 4G services. Telstra Corp. operates Australia’s only working 4G network, which uses the 1,800 megahertz frequency.

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net


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