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Australian Regulator To Sue Apple Over Misleading Promotion For New IPad

Australian Regulator To Sue Apple Over Misleading Promotion For New IPad
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The new iPad from Apple Inc. (AAPL: Quote) seems to be courting more trouble, as the Australian Competition and Consumer Commission or ACCC prepares to make an application to the Federal Court in Melbourne on Wednesday seeking orders against the technology giant and Apple Pty Limited for alleged contraventions of the Australian Consumer Law.

The Australian Competition and Consumer Commission alleges that Apple's recent promotion of the new "iPad with WiFi + 4G" is misleading as it conveys that the product can connect to a 4G mobile data network in Australia with a SIM card, which is not true.

The ACCC is "seeking urgent interlocutory relief to ensure consumers are made aware of the correct technical capabilities of this device. "

The ACCC is seeking final orders including injunctions, pecuniary penalties, corrective advertising and refunds to consumers affected.

The regulator urged consumers who have purchased or are considering to buy "iPad with WiFi + 4G" to ensure that they have a proper understanding of the mobile data networks which this iPad can directly access with a SIM card.

Telstra Corp. Ltd. (TLS, TLS.AX, TLSYY.PK) operates Australia's only 4G network. It is on a different part of the telecommunications spectrum and cannot be connect to the iPad.

The new iPad is a blockbuster and sold three million in the first three days of its launch on March 16. The new device comes with a new Retina display, the company's new A5X chip with quad-core graphics, a 5 megapixel iSight camera and ultrafast 4G LTE among a host of other features.

However, this is not the first complaint against iPad 3. The Consumer Reports said last week that the new iPad 3 can run 'significantly hotter' than the earlier version of iPad 2 when running an action game.

Meanwhile, it is reported that the Australian regulator can fine Apple up to $10.5 million or thrice the value of the revenue collected from the act.

AAPL, which closed at $606.98 on Monday, is sliding 0.37 percent in pre-market trading.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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