Apple is refusing to put corrective stickers on packaging for its new iPad claiming that it would be “cumbersome” but will offer refunds for customers who believe they were misled.
The tech giant, though, has offered to put corrective notices at the points of sale for the new tablet computer, saying that the product supports ultra-fast mobile broadband but is not compatible with Telstra’s long-term evolution for the fourth-generation network.
Apple has been accused by market watchdog, the Australian Competition & Consumer Commission, of misleading Australian consumers by selling a product called “iPad with Wifi + 4G” when it cannot connect with any 4G mobile network in Australia.
Acting for Apple, barrister Paul Anastassiou, told the Federal Court in Melbourne today that “ultimately at trial, it will be contested by Apple there are in Australia networks – that according to international definitions are 4G – are properly described as 4G.”
Mr Anastassiou added: “what Apple says is that other networks operated by Telstra are in fact properly described by international standards as 4G even though Telstra itself does not so describe them.”
Mr Anaastassiou also said the company is prepared to email customers to say the device was not compatible with the Telstra 4G network. Apple, the world’s most valuable company, is willing to offer a refund to any customer who believed they had been misled by references to 4G, he said.
ACCC barrister Colin Golvan SC said Apple did not have an iPad that would meet consumers’ requests to use the 4G network.
First concerns
The ACCC today revealed in court that it first wrote to Apple about its concerns on March 15, the day before the new iPad went on sale, and on March 20.
It sent formal demands on March 23 but that Apple’s response was to comprehensively deny that there was any misleading conduct, Mr Golvan told the court.
The ACCC wants Justice Mordy Bromberg to order Apple to publish corrective advertising within three days on its website and in 11 newspapers.
It also wants to stop Apple using its model name “iPad with Wifi + 4G”, “unless and until the device under this name can, with a SIM car, connect to a 4G mobile network in Australia.”
The stickers the ACCC wants affixed to the tablet packaging should state that the device is “not compatible with current Australia 4G networks.”
The matter has been adjoined until noon, AEDT, for a hearing among parties.
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