In Australia, Apple Fined $2.5 Million For '4G' Advertising Claims 154
Whiney Mac Fanboy writes "Apple has agreed to pay a $2.25 million (AUD) fine (along with 300k legal costs) to the Australian Competition & Consumer Commission for misleading advertising. Apple misrepresented their iPad product as being a '4G' device, when in fact they're only compatible with a very small percentage of 4G networks around the world. The Age online has the full story."
Re:It's not finalized yet (Score:5, Informative)
Here is the cite from "The Australian". http://www.theaustralian.com.au/australian-it/judge-wants-data-on-wealth-before-he-rules-on-apple/story-e6frgakx-1226389535095 [theaustralian.com.au]
"Apple had offered to provide full refunds" (Score:5, Informative)
Funny how these markets and lawyers and politicians always leave-out relevant facts. "Alan Archibald, QC, acting for Apple, told the court it was irrelevant how many iPads had been sold or returned because Apple had offered to provide full refunds, so there was no loss to customers. "What conceiveable damage might there be?", he said."
The guy forgets that Apple only offered these refunds AFTER the government started prosecuting them. That alone is reason enough to fine them, because had the government not existed, then Apple would have happily lied with its "iPhone 4G" campaign and refused to refund the cash to the ripped-off Australians. (Also refunding the phone doesn't mean customers are exempt from the 2-3 year contracts. Now they are phoneless, but still stuck with a bill.)
Re:a little understated (Score:4, Informative)
Re:So, that's about... (Score:4, Informative)
Apple earned about 25,000 million last year, which comes to 2.8 million per *60* minutes..... not a mere 3-4. I can't help wondering why the judge is worried about the fine being too large. Apple won't be hurt by this.
Re:a little understated (Score:5, Informative)
Australia has 4G; quite an extensive LTE network in fact and one that can be used with most new Android phones, it's just that we don't yet use the frequencies that only the USA uses and that Apple solely targeted. Europe is in the same boat, they have 4G but don't use the USA frequencies.
Apple clearly said "* You can have 4G if you are in America" however the * statements that would be allowed in America are not allowed here. Disclaimers in Australia cannot, under law, substantially change the headline of an advertisement. That is, you can't say 4G Capable in the headline then disclaim it as "Only in America" in the Australian market.
I'm surprised Apple didn't use an LTE chip with a larger number of bands. Restricting it to AT&T frequencies seems counter-productive.
Risky buisness (Score:3, Informative)
In Australia we don't take to kindly to snake oil salesmen, it is why we have institutions like the ACCC.
Next we will be coming for their profits that they are shuffling off overseas to avoid taxation, the public discontent is growing with both Google and Apple about this, and the more they mess around and make themselves targets with things like this and trying to get injunctions against the galaxy S3, the closer they come to turning the public against them.
Australia is not like the USA in regards to loving/respecting companies ripping off the system.
Re:So, that's about... (Score:2, Informative)
Apple earned about 25,000 million last year, which comes to 2.8 million per *60* minutes..... not a mere 3-4. I can't help wondering why the judge is worried about the fine being too large. Apple won't be hurt by this.
The judge specifcally said he was worried about the scale, not that it was too small, that the upper ranges he was talking about was a $300million company would suggest to me that if the numbers they do present show what you are saying he will flip his lid and up the penalty.
http://www.theaustralian.com.au/australian-it/judge-wants-data-on-wealth-before-he-rules-on-apple/story-e6frgakx-1226389535095
"I don't know whether we're talking about a corporation that makes $10m or $300m," he said. "How do I know that it (the penalty) is meaningful for Apple if you don't put before me any idea of what its financial position is?"