Apple Fined $2.2M For Misleading Ads

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The Australian government has hit Apple with a $2.2 million fine for misleading consumers in that country. I'm sure the company isn't too worried, they can pay that out of petty cash.

Apple will soon pay a fine equal to approximately US$2.21 million for misleading the public in its Australian iPad advertisements, The Australian reports. A Federal Court in Australia on Friday confirmed that it was advised that Apple has agreed to settle a case filed by the Australian Competition and Consumer Commission, alleging that the company’s ads touting the iPad as a 4G device were misleading since it cannot connect to 4G networks in Australia.
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Lol... Guess we could compare that to getting a warning for a burnt headlight on your car instead of a ticket.
 
Good. I'm a fan of Apple Products, but not so much what the company does some times.

I would be happy to see this regardless of what company did it.
 
but the iPad does connect to a 4G network! It's not Apple's fault that Australia is using the wrong 4G networks! I mean dont they know that countries need to adopt only Apple approved standards/systems?
 
Ouch in this case I find myself defending apple.

If the hardware has the ability to connect and fully use a 4G network, it is not apple's fault that a 4G network is not available.

In theory people could sue any product that advertises GB network connectivity even though they have a 100MB network.

Though it doesn't help when there are 18 (exaggeration) different "4G" network types... There SHOULD be some easy way for customers to differentiate the networks and device ability. Personally I blame the network providers, I believe they want it to be confusing so customers are forced to only purchase products they sell. It was the same with 3G, Verizon and Sprint has same type of network but I believe most devices could not be used on both networks.
 
Oops! However that is just at most like a slap on the wrist and pocket change for Apple. :)
 
oh and I completely agree, 2.2m for a penalty is insane for apple. They probably could just chalk it up as a cost at that amount and continue to do it and still make money. They could just send a check every month.

THIS is really the reason why some judgements (like copy write infringement) are so insanely high... they are meant to deter large companies that can afford it... Not 18 year old Billy working at Mcdonalds.
 
question is did Apple knew that Australia couln't connect to a 4G network? what if they didn't know, they simply advertisement same info everywhere, maybe Australia should upgrade their network? you want this technology then change it, otherwise dont buy the ipad from Apple? I dunno, I could never own a business, too many problems to deal with, too many greedy people out there waiting and trying to find a way to sue someoned else.
 
yeah, this is a really dumb fine. While the average person isn't going to know what to do with the information, they (Apple) clearly list the LTE specs on their website.


I recall reading an article when this story broke and Apple offered people a complete refund if they weren't happy with their 4G iPad... a good PR move, but apparently not good enough.
 
"oh and I completely agree, 2.2m for a penalty is insane for apple"

Well, a fine should not necessarily be based on how much money a company has (short of an outright deal where thousands of people die or something). It should be based on the offense.

The fine should be the same whether it was Apple, HP, MIcrosoft, or whoever.

Anything else is kinda hatin'
 
TechLarry said:
"oh and I completely agree, 2.2m for a penalty is insane for apple"

Well, a fine should not necessarily be based on how much money a company has (short of an outright deal where thousands of people die or something). It should be based on the offense.

The fine should be the same whether it was Apple, HP, MIcrosoft, or whoever.

Anything else is kinda hatin'
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Well I agree in some ways to a point. Penalties need to serve their purpose which generally is to deter or prevent a behavior. Speeding tickets are to deter speeding (or generate revenue for the state lol). Sure giving a $200 speeding ticket to a fry cook will probably get the point across, but to Donald Trump it's not nearly effective. The opposite is true as well, look at copywrite infringement penalties and suits against individual people.

Granted I generally agree with you, but 2.2million for this offense (which in this case I don't even really agree with) is pocket change for Apple, MS, or Google.
 
I think that had Apple not argued semantics when the ACCC requested them to cease advertising the iPAD as a 4G device and just stopped they wouldn't be facing a fine today.

The debate over what constitutes 4G has been a point of contention among those in the telecom space for some time. U.S. providers like T-Mobile have been marketing their service as 4G when they in fact have a souped-up version of 3G known as HSPA+. It's faster than 3G, but does not quite get the same performance as a full-blown 4G LTE network, like the ones currently being rolled out by Verizon and AT&T in the states.

Apple said access to HSPA+ networks in Australia was enough to warrant the 4G designation on its new iPad there.
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Source
 
Im not an apple fan really, but im on their side with this case unless there is more to it then this thread suggests. Doesn't ipad 4g mean 4th generation. I don't see the problem, really unless their commericals over there were more misleading then just the name.
 
buttons said:
Im not an apple fan really, but im on their side with this case unless there is more to it then this thread suggests. Doesn't ipad 4g mean 4th generation. I don't see the problem, really unless their commericals over there were more misleading then just the name.
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They marketed it as a 4G device but owing the their incompatibility with 4G in that country it was a 3G device. People bought it on the assumption it would be connecting at the 4G speeds when it was connecting at 3G or 3G+. The Australian version of the FCC requested they cease marketing it as 4G since it wasn't, Apple argued it was as good as but eventually stopped after some months and now they're being fined for deceptive advertising.

As I pointed out earlier, I think that had they stopped marketing it as 4G when they were asked to they wouldn't be facing a fine now. If it's 3G HSPA+ capable in that country they should have simply rebranded it as such and been honest about what it was. It's like 4G LTE but a bit slower...
 
the fake 4g hspa+ network monker in the usa should of never been allowed as its not an new network and speeds are not much better then hsdpa away way (but guess 0.5-3mb is an improvement thought but should be H+ at best not 4g network icon)
 
APPLE?!?

MISLEADING ADS?!??!

NNNNOOOOOOOOOOOOO!!!!
 
BettiePage said:
but the iPad does connect to a 4G network! It's not Apple's fault that Australia is using the wrong 4G networks! I mean dont they know that countries need to adopt only Apple approved standards/systems?
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kind of like how a cars speedmeter range is 130 but the car will never be able to go past 90 :)
 
zomby said:
question is did Apple knew that Australia couln't connect to a 4G network? what if they didn't know, they simply advertisement same info everywhere, maybe Australia should upgrade their network? you want this technology then change it, otherwise dont buy the ipad from Apple? I dunno, I could never own a business, too many problems to deal with, too many greedy people out there waiting and trying to find a way to sue someoned else.
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Or maybe Apple gambled that if they sold enough product, that someone would hook people up with 4g capability?

That was RCA's strategy....flood the market with enough color TV's that every TV station had to change over to color. Was that false advertising too?
 
fatrat said:
Or maybe Apple gambled that if they sold enough product, that someone would hook people up with 4g capability?

That was RCA's strategy....flood the market with enough color TV's that every TV station had to change over to color. Was that false advertising too?
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Australia has 4G. It's on a different frequency than the 4G on the iPAD. iPad does 700Mhz and 2100Mhz and Oz's 4G is 1700Mhz. 700Mhz is TV and I'm not sure about the 2100Mhz but Apple knew it wasn't going to connect if not before they started selling them there then when they started. It's not much different than them skewing the bars on the 3gs iPhone when they first dropped the 4g version and found out it had crappy reception.

They don't want to cop to anything that makes them look like less than the belle of the ball.
 
madmat said:
Australia has 4G. It's on a different frequency than the 4G on the iPAD. iPad does 700Mhz and 2100Mhz and Oz's 4G is 1700Mhz. 700Mhz is TV and I'm not sure about the 2100Mhz but Apple knew it wasn't going to connect if not before they started selling them there then when they started. It's not much different than them skewing the bars on the 3gs iPhone when they first dropped the 4g version and found out it had crappy reception.

They don't want to cop to anything that makes them look like less than the belle of the ball.
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Ok, so Apple gambled that if they sold enough Ipads, that Australia would add the necessary freqs so their product could hook up on 4g too.

That is why the fine is so tiny methinks. ;)
 
fatrat said:
Ok, so Apple gambled that if they sold enough Ipads, that Australia would add the necessary freqs so their product could hook up on 4g too.

That is why the fine is so tiny methinks. ;)
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I sincerely doubt Australia is going to switch frequencies to support what is most likely a minor percentage of products.Compare the iPad to all the 4G phones and devices floating around and it's a drop in a bucket.

They probably hoped no-one would wise up to it not really being 4G.
 
They need a standard for 4g not 10 companies at different frequencies or souped up 3g being pushed as 4g but whatever
 
zomby said:
question is did Apple knew that Australia couln't connect to a 4G network? what if they didn't know, they simply advertisement same info everywhere, maybe Australia should upgrade their network? you want this technology then change it, otherwise dont buy the ipad from Apple? I dunno, I could never own a business, too many problems to deal with, too many greedy people out there waiting and trying to find a way to sue someoned else.
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Would apply only if there really was just one general ad everywhere. But each country has their own version of the Apple site and their own commercials specifically tailored for that country. Different currencies, different languages, different retailers.
 
Bman123 said:
They need a standard for 4g not 10 companies at different frequencies or souped up 3g being pushed as 4g but whatever
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We'll have none of that logic around here! Every cellular provider needs to be able to checkbox the feature without spending money on network upgrades so they each are entitled to their own absurd idea of what counts as 4G.
 
BettiePage said:
but the iPad does connect to a 4G network! It's not Apple's fault that Australia is using the wrong 4G networks! I mean dont they know that countries need to adopt only Apple approved standards/systems?
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SkribbelKat said:
We'll have none of that logic around here! Every cellular provider needs to be able to checkbox the feature without spending money on network upgrades so they each are entitled to their own absurd idea of what counts as 4G.
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To bad nobody actually has 4G but only has 3.5G (super 3G??? ;) ) at best as nobody is anywhere close to the actual standards of 4G. Unless i'm missing the phone / device that gets 1Gbps down for business users and 100Mbps down for normal consumers.
 
Nope, you're not missing anything. It wouldn't be profitable to upgrade the network when people are paying very handsomely for existing services. We all know the poor cell phone providers are doing everything they can to make ends meet and we wouldn't want to burden them by asking them to do things like give us unlimited data or use available technologies to improve performance. :p
 
This is one reason why I scoff at EU and AU persons who complain that Steam games cost more in their jurisdiction than in the US. Well, duh, when the advertising laws (one of many issues) require this many more lawyers, what do you expect!? Ever consider the fact that your 'local' laws are more harmful to the gaming economy? Nah, easier to blame greedy US-based gaming companies than natural pricing disparity based on statistics with far greater meaning.
 
Maxx said:
This is one reason why I scoff at EU and AU persons who complain that Steam games cost more in their jurisdiction than in the US. Well, duh, when the advertising laws (one of many issues) require this many more lawyers, what do you expect!? Ever consider the fact that your 'local' laws are more harmful to the gaming economy? Nah, easier to blame greedy US-based gaming companies than natural pricing disparity based on statistics with far greater meaning.
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What is wrong with this ruling? They make ads for THAT COUNTRY that state it is a 4G device when in fact it is not IN THAT COUNTRY. If I make a device and claim it has a universal power cord and it is only the standard 3 prong used in the USA I can't claim, well i'm not lying your country just needs to change their standards for power then you can use it in your country also.

I am tried of all the false advertising you see on tv and in print, somebody needs to stop all these asshats from being able to make their claims.

Stuff like speedupmypc.com and all those sites that are on tv all the time claiming that they can make your computer 5 times faster and all that crap. or the made up diet pills and other stuff that makes claims then in small print (this has not been approved / confirmed by the FDA). Or how about the way that everyone has the most 4G coverage? Or the fastest speeds? Or better yet how about the comericals from Comcast, dish and the rest that tell you that if you sign up for their service you get their service for X number of months for $Y amount? Do you know that they have been going against that for a decent number of people and changing their rates then saying that they have the right to raise your rates at any time and don't actually have to give you those terms?

There needs to be stricter rules in place for ads and those that lie should be punished.
 
My TV said 1080p but nobody broadcasts in 1080p I'm suing.

No but seriously, if I understand this, Apple lied about having fake 4G as opposed to everyone else who told the truth that they have fake 4G?
 
Exavior said:
If I make a device and claim it has a universal power cord and it is only the standard 3 prong used in the USA I can't claim, well i'm not lying your country just needs to change their standards for power then you can use it in your country also.
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Apple isn't claiming that the device has universal 4G, just 4G. It's akin to naming your hypothetical device the Device + Three Pin Power Plug. It has a three pin power plug, just as the iPad + 4G has 4G wireless capabilities. Those capabilities just don't work in Australia.

It's a grey area. Seems to me Apple was accommodating to Australian consumers, but it apparently wasn't enough to satisfy the Australian government, so here we are.
 
Sounds like a Best Buys bait & switch product policy. No, no, no... I mean a bait & fail to deliver policy. :eek: With all the money Apple has stockpiled... no one in their marketing department researched the foreign 4G network connectivity to their product? Who would even think a 2.1 million dollar fine (or that in additional taxes) for that matter be o.k. for Apple to pay? Apple's CEO and upper level management people must be upset at research members in their foreign marketing department. :D
 
Good thing the judge never saw these

Get%20a%20Mac.jpg


He would have REALLY given them a reaming then!
 
wonderfield said:
Apple isn't claiming that the device has universal 4G, just 4G. It's akin to naming your hypothetical device the Device + Three Pin Power Plug. It has a three pin power plug, just as the iPad + 4G has 4G wireless capabilities. Those capabilities just don't work in Australia.

It's a grey area. Seems to me Apple was accommodating to Australian consumers, but it apparently wasn't enough to satisfy the Australian government, so here we are.
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The name though is telling you the features that it has. If my device had that name, and I sold it in another country with a 3 prong (yet different from the USA's) power design with that name they would have no reason to assume that I don't mean their 3 prong design as it isn't called device + USA three ping power plug.

That said I did find another article that gave 1 major addition of information that now brings me into thinking that it might not have been as much false advertising possibly as it seemed at first.

http://arstechnica.com/apple/2012/06/apple-to-pay-2-million-for-misleading-aussies-over-4g-ipad/

According to this article they put big stickers on the ipads stating that the 4G didn't work with their network and had a warning on the site. So they actually were making people aware about that fact. Which is different that than how the other one made it sound. Still begs the question of how much did the 4G functionality get promoted in the tv and printed ads in that country.

Also found another site, forget the link now that said that a few weeks ago they changed that from wifi + 4G to wifi + cellular. at which case it fine and more descriptive for that county. Which they could have done from that start and avoided all this.
 
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