Apple reaches A$2.25M settlement with Australian regulator over 4G iPad
Apple has agreed to pay an A$2.25 million penalty to an Australian consumer rights watchdog after being accused of falsely advertising its LTE-capable iPad in the country.
In addition to the A$2.25 million (US$2.23 million) penalty, Apple is also expected to pay A$300,000 toward the Australian Competition and Consumer Commission's legal fees, The Australian reports (via The Next Web). The ACCC filed its complaint against Apple in March shortly after the release of the new iPad.
Colin Golvan, who represents the ACCC, described the penalty as "substantial" and hoped it would serve as a deterrent to the computer industry.
Though Apple has agreed to the settlement amount, a judge still needs to sign off on the agreement. According to the report, Judge Mordy Bromberg expressed concerns that he didn't have enough information to ascertain whether the penalty is "appropriate."
"At the moment on the agreed facts you put before me, I have no idea whether a consumer who bought the iPad, thinking it could connect to 4G but then realising that it couldn't, has been impacted in any way," Bromberg said."
The commission took issue with Apple advertising the device as 4G even though it was not compatible with LTE networks in Australia. Apple initially defended its decision, claiming that iPad-compatible 3G networks operated by Telstra, Optus and Vodafone in the country could be classified as 4G. The company also revised its store to better inform customers about the iPad's LTE functionality and also offered refunds to customers who were unhappy with their purchase.
Last month, Apple acquiesced to complaints and began rebranding its "iPad Wi-Fi + 4G" as the "iPad W-Fi + Cellular."
In addition to the A$2.25 million (US$2.23 million) penalty, Apple is also expected to pay A$300,000 toward the Australian Competition and Consumer Commission's legal fees, The Australian reports (via The Next Web). The ACCC filed its complaint against Apple in March shortly after the release of the new iPad.
Colin Golvan, who represents the ACCC, described the penalty as "substantial" and hoped it would serve as a deterrent to the computer industry.
Though Apple has agreed to the settlement amount, a judge still needs to sign off on the agreement. According to the report, Judge Mordy Bromberg expressed concerns that he didn't have enough information to ascertain whether the penalty is "appropriate."
"At the moment on the agreed facts you put before me, I have no idea whether a consumer who bought the iPad, thinking it could connect to 4G but then realising that it couldn't, has been impacted in any way," Bromberg said."
The commission took issue with Apple advertising the device as 4G even though it was not compatible with LTE networks in Australia. Apple initially defended its decision, claiming that iPad-compatible 3G networks operated by Telstra, Optus and Vodafone in the country could be classified as 4G. The company also revised its store to better inform customers about the iPad's LTE functionality and also offered refunds to customers who were unhappy with their purchase.
Last month, Apple acquiesced to complaints and began rebranding its "iPad Wi-Fi + 4G" as the "iPad W-Fi + Cellular."
Comments
This settlement pisses me off. Apple offered anyone who wanted it a full refund, so how can anyone claim "damages." This is just the government extorting money from a wealthy company to fill their pockets while looking like they are "watching out for consumers." Granted, I can't blame apple for settling to avoid the hassle.
Yeah...Here's some pocket change, kid. Now move on, yer botherin' me, yer botherin' me.
I am so embarrassed right now to be Australian. Let's hope His Honour reviews this and finds that no-one was actually harmed etc by this naming issue, and dismisses the case.
The ACCC was supposed to be tougher this year, yet it picks on Apple instead of the banks, telcos and health insurance industries. Unbelievable.
This goes to show you that you need to think about the idiot more than the average person when marketing a product.
A token settlement and possibly face saving outcome (as illustrated by the judge's inability to determine a proper penalty). No one losing sleep in Cupertino tonight over this!
Quote:
Originally Posted by Tibor
I am so embarrassed right now to be Australian. Let's hope His Honour reviews this and finds that no-one was actually harmed etc by this naming issue, and dismisses the case.
The ACCC was supposed to be tougher this year, yet it picks on Apple instead of the banks, telcos and health insurance industries. Unbelievable.
my thoughts exactly. The amount of stuff we get ripped off on in Australia is amazing. Pay one of the highest tax rates in the world and everything costs more than anywhere else yet the ACCC do nothing about anything that actually matters
If my math is correct the settlement comes out to 1.36 cents USD per share. I think it's silly and would have fought this for the principle of the matter but, as you say, no one is losing sleep in Cupertino over this.
A money grab by government bureaucrats. And they wonder why goods imported to Australia costs 50% more...
http://imgur.com/9cpxE
That is all... lol
Quote:
Originally Posted by SolipsismX
"This never would have happened under Steve Jobs watch."
This goes to show you that you need to think about the idiot more than the average person when marketing a product.
New Apple ad "The new iPad with 4G. Please note that 4G service may not work where there is no 4G service. For example, Antarctica, Marianas Trench, the Moon, and Australia."
I'm standing in a strangers house right now with my wifi iPad. This stranger has wifi service in his house but refuses to give me his password thus rendering the wifi functionality on my iPad useless. I'm gonna sue Apple for advertising wifi functionality on the iPad.
Quote:
Originally Posted by Tenfingers
This settlement pisses me off. Apple offered anyone who wanted it a full refund, so how can anyone claim "damages." This is just the government extorting money from a wealthy company to fill their pockets while looking like they are "watching out for consumers." Granted, I can't blame apple for settling to avoid the hassle.
No, it's to stop companies misleading people.
Quote:
Originally Posted by John.B
A money grab by government bureaucrats. And they wonder why goods imported to Australia costs 50% more...
What does that have to do with costs of things?? This is about misleading advertising...
Quote:
Originally Posted by GadgetCanada
I'm standing in a strangers house right now with my wifi iPad. This stranger has wifi service in his house but refuses to give me his password thus rendering the wifi functionality on my iPad useless. I'm gonna sue Apple for advertising wifi functionality on the iPad.
Yeah real close.....not.
Quote:
Originally Posted by GadgetCanada
New Apple ad "The new iPad with 4G. Please note that 4G service may not work where there is no 4G service. For example, Antarctica, Marianas Trench, the Moon, and Australia."
More like the rest of the world except the US and Canada...maybe you should get a clue.
Hey, I'm an Apple fan but this was their mistake. Truth in advertising: it says 4G LTE all over the box and in the adverts but it can't deliver (yet). Wouldn't have been a problem if it had been compatible with Telstra 4G but it isn't.
Just as long as as the ACCC is consistent in the application of these standards to other companies, I can't see the problem. It's not going to hurt Apple that much