[Australia] ACCC taking action against Apple for misleading advertising over iPad 4G

[timmysbiscuits]

http://www.smh.com.au/business/watchdog-bites-apple-for-selling-ipad-as-4g-20120327-1vw8h.html

In summary: Australia only has a small 4G network so far, and what we have works on a different frequency to what the 3rd gen iPad supports. The ACCC (Australia’s consumer ‘watchdog’ – who we go to with complaints about misleading advertising etc.) is filing an application in the federal court alleging that Apple selling the iPad in Australia as an “iPad with WiFi + 4G” is misleading.


From the article:

“The competition watchdog is taking action against Apple for selling the iPad 3 as a ‘’4G’’ device even though it doesn't work on any Australian 4G networks.

The ACCC alleges that Apple's recent promotion of the new "iPad with WiFi + 4G" is misleading because 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 competition regulator said it was seeking injunctions, penalties, corrective advertising and refunds to consumers who were misled.

"Consumers who have purchased or are considering purchasing a “iPad with Wifi + 4G” should ensure that they have a proper understanding of the mobile data networks which this iPad can directly access by a SIM card,’’ the ACCC warned.

The application will be lodged in the Federal Court in Melbourne tomorrow morning. A court date has not yet been set.”

 

[MacAttacka]

Apple fan as I am I totally agree. There's nothing wrong with the 4G chip its just that its only functional on Verizon and AT&T in the US. its the fact that they are using the exact same marketing in every other country regardless of the fact the 4G is either 100% incompatible with local networks or there is no 4G network at all.

All Apple have to do is change how they market the device outside the US.

A lot of people with no tech savvy are going to be mislead and this is so not like Apple

 

[Pressure]

The same happens in Denmark currently.

Because they are selling it as a 4G device, which isn't compatible with the frequencies we use in Europe, we could actually ask for a reduction of the price because even though the feature is prominently advertised on the package, it isn't actually available.

Pretty much like the Playstation 3 which suddenly lost its ability to run Linux. People who bought the PS3 before it got crippled can get money for the feature they suddenly lost, because it is actually advertised as having it.

 

[Abazigal]

It can still run 3G, right? And the cost is the same as last year's model with 3G. So I don't see how they have lost out in any way.

 

[miniConvert]

The new iPad has HSPA+/DC-HSDPA, which gives sufficient bandwidth to scrape in as 4G on even non-LTE networks. The peak speed is 42Mbps.

There is potential for this in most markets.

That doesn't mean I wouldn't like to see Apple's marketing approach changed outside of the US. I would. But I don't believe Apple are doing anything fundamentally wrong.

 

[Ries]

It can still run 3G, right? And the cost is the same as last year's model with 3G. So I don't see how they have lost out in any way.

The Ipad doesn't connect to 4G in Denmark, even thou it clearly says it does. Touting feautes it doesn't have is "illegal".

 

[MacAttacka]

The new iPad has HSPA+/DC-HSDPA, which gives sufficient bandwidth to scrape in as 4G on even non-LTE networks. The peak speed is 42Mbps.

There is potential for this in most markets.

That doesn't mean I wouldn't like to see Apple's marketing approach changed outside of the US. I would. But I don't believe Apple are doing anything fundamentally wrong.

Exactly. They could tout this as "the worlds fastest mobile data connection device" or something and they would be 100% right. In every country on the planet it can hook up to the fastest networks available. All they had to do was avoid the word "4G".

 

[mlmwalt]

I would be bummed to get The New iPad in 4g and not have it work with my country's 4g network. I'd return it and stick to wifi. But that's me.