Apple is to offer consumers in Australia a refund on the new iPad following the threat of legal action by Australia’s Competition and Consumer Commission (ACCC), which claims that by promoting the new iPad with 4G capabilities which don’t work in the area, Apple is contravening Australian consumer law.
Apple also reportedly agreed to put in-store notifications by point-of-sale devices but not on packaging, the paper reported.
An ACCC official declined to comment, citing the ongoing legal case, but in a previous press release, the ACCC claimed Apple is promoting its latest tablet as the new “iPad with WiFi and 4G” in Australia. However, as the iPad’s 4G capabilities do not work in Australia, the ACCC believes Apple is misleading consumers and is infringing a number of sections within Australia’s consumer law.
The new iPad was unveiled at the start of the month, which included 4G LTE connectivity. However, this only works on AT&T and Verizon networks in the US and on Bell, Rogers and Telus networks in Canada, which run on the 700MHz and 2100MHz spectrums.
In Australia, network provider Telstra has its own 4G provider on the 1800MHz spectrum, which is incompatible with the new iPad.