The Australian Federal Court has fined Apple AUD 2.25 million for misleading advertising of its new iPad, following action taken by the Australian Competition and Consumer Commission (ACCC). Apple promoted the “iPad with WiFi + 4G” in Australia between March and May on its website, its online store, and in its retail store. However, the new iPad could not connect to any networks which have been promoted in Australia as 4G networks, in particular Telstra’s LTE network. The Court declared that Apple’s conduct was liable to mislead the public in contravention of the Australian Consumer Law. Apple agreed to the declaration and consented to the penalties and other orders sought from the court. Apple was also ordered to pay a contribution to the ACCC costs in the amount of AUD 300,000.
In his reasons for judgment, Justice Bromberg considered that Apple’s conduct was “serious and unacceptable” and stated that “The most concerning aspect of Apple’s contravention… is the deliberate nature of its conduct”. Justice Bromberg noted that the facts of the case suggest that “global uniformity was given a greater priority than the need to ensure compliance with the ACL”. He warned that: “Those who design global campaigns, and those in Australia who adopt them, need to be attuned to the understandings and perceptions of Australian consumers”.
