The Australian Competition and Consumer Commission said today Apple is violating the Australian Consumer Law by misleadingly calling its newiPad as 4G capable, and it will try to get a court to impose fines and an injunction against sales.
High speed wireless networking in Australia uses different 4G frequencies than those the new iPad supports, and a consumer commission will seek fines and injunctions barring sales.
The commission will apply to the Federal Court in Melbourne for orders tomorrow morning against Apple, it said in a statement: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.
He ACCC is seeking urgent interlocutory relief to ensure consumers are made aware of the correct technical capabilities of this device.
Additionally, the ACCC is seeking final orders including injunctions, pecuniary penalties, corrective advertising, and refunds to consumers affected.
Apple offers two varieties of the third generation iPad, one with only Wi Fi networking and one with wireless network service provided through mobile phone networks.
A week after the launch of the new iPad, the device now accounts for about 1 in 15 Apple tablets accessing the Internet, according to a mobile ad network said.
In the United States and some other areas, the wireless network can work with the higher speeds of the LTE standard for 4G networking.
In May 2010 in the United States, it accounted for 59% of mobile web data consumption .
In Australia, though, there is 4G service from Telstra, but it uses an 1800MHz frequency band, ZDNet Australia reports.
“Consumers who have purchased or are considering purchasing an ‘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 said.
The AT&T and Verizon models don’t work on each others’ LTE networks, but the Verizon model works on AT&T’s 3G network and T Mobile’s 2G EDGE network with the appropriate SIM card.
The Apple store in Australia uses the standard product naming for the 4G capable model, but the fine print makes mention of using 4G networks only overseas.
“The iPad with Wi Fi + 4G model can roam worldwide on fast GSM/UMTS networks, including HSPA, HSPA+, and DC HSDPA. When you travel internationally, you can use a micro SIM card from a local carrier. You can also connect to the 4G LTE networks of AT&T in the US and Bell, Rogers, and Telus in Canada,” the Apple store iPad product page said today.
The iPad product page in Australia offers the Wi Fi + 4G model, but the fine print below it only promises 4G service in other countries.
Oliver Ilie is a business journalist based in Sydney, Australia. Oliver has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Oliver spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.