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Australia squeezes Apple for $2.2 million over 4G advertising for iPad

News by Dan Seifert on Friday June 08, 2012.

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Apple iPad
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Apple has been under fire in Australia for its use of 4G when referring to the new iPad ever since the tablet was launched, but now it seems that it will have to pay for its allegedly misleading advertisements. The Australian reports that the company has agreed to pay a 2.25 million AUS (US$2.2 million) penalty to the Australian Competition and Consumer Commission and cover the 300,000 AUS in legal fees the ACCC had to pay during its lawsuit against Apple.

Prior to this settlement, Apple agreed to provide refunds to any iPad buyers that felt they were mislead by its 4G claims, and it changed the wording on its website to say that the new iPad only supports HSPA+ networks in Australia (it supports LTE networks in North America, but no where else in the world). Apple did try to argue that HSPA+ was fast enough to be considered "4G," something that would certainly fly here in the U.S., but none of the Australian carriers have ever described their HSPA+ services as 4G.

The $2.2 million settlement may not sound like much for Apple, which has over $100 billion in its bank, but it is an acknowledgement by the company that perhaps its initial advertising for the new iPad was misleading to consumers. The settlement agreement is still pending approval by the judge overseeing the trial between Apple and the ACCC.

source: The Australian, via: TechCrunch

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About the author

Dan Seifert
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.

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