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Apple misleading consumers about iPad 3 4G connectivity, competition watchdog tells court



The new iPad 3 builds on the developments of the two previous models with a faster processor and much higher screen resolution.

APPLE has misled Australian consumers with claims in its advertising and packaging that the new iPad 3 can connect to the superfast 4G network, a judge heard today.

Colin Golvan SC said the tech giant was warned by the consumer watchdog before the device went on sale that it's advertising was misleading but went ahead anyway.

Review of Apple's new iPad

Mr Golvan told the Federal Court that Telstra is the only network offering LTE 4G in Australia and the new Apple iPad is not compatible.

"Apple doesn't have an iPad that would meet consumer requests for an iPad that would use a SIM card to connect to a 4G network," said Mr Golvan, who was appearing for the ACCC.

"They knew it wouldn't connect."

Apple has been hauled before the Federal Court by the Australian Competition and Consumer Commission after talks failed to resolve a dispute over the company's claims. Justice Mordy Bromberg heard the startling claim by Apple today that Australians have 4G networks but they just don't know about it.

Paul Anastassiou SC for Apple said that by international standards Australia's 3G networks are actually 4G and that they should not be bound by Telstra's definition. Mr Anastassiou also revealed that Apple is prepared to give a refund to anyone who bought an iPad 3 in the belief it would connect to Telstra 4G. Mr Golva told the interlocutory hearing in Melbourne the packaging on the device carried the words "iPad 3 with wi-fi and 4G".

Phone companies like Vodaphone also marketed the IPad with advertising that claimed they were rolling out a 4G network when the earliest date for a compatible network was 2015. The judge heard the ACCC and Apple tried to reach a compromise but couldn't agree on how information should be conveyed to consumers.

Mr Anastassiou said Apple was prepared to say that the iPad 3 is not compatible with Telstra 4G but does not want to say it will not work on ultra fast mobile networks. He said Apple is happy to email people who have bought the device to inform them it will not work with Telstra 4G and place notices at point of sale in its shops.

Justice Bromberg said that what is important is the understanding of ordinary consumers about 4G networks. Mr Golvan said the ACCC wants media advertising and stickers placed on the packaging that points out the limitations of the device.

The judge adjourned the case until later in the day to allow the parties to try and reach an agreement on the information that should be given to consumers.