Australia regulator says Apple misleading consumers on iPad

SYDNEY Tue Mar 27, 2012 2:39pm IST

1 of 2. Customers look at the new iPad at the Apple Store in the Eaton Centre shopping mall in Toronto, March 16, 2012.

Credit: Reuters/Mark Blinch/Files

Related Topics

Stocks

   

SYDNEY (Reuters) - Apple's (AAPL.O) hot-selling new iPad hit a hurdle in Australia on Tuesday as the country's consumer affairs regulator accused the company of misleading promotions.

The Australian Competition and Consumer Commission said it would ask a federal court on Wednesday to order Apple to ensure consumers were made aware of the real technical capabilities of the device, correct its advertising and refund any affected buyers.

Apple's promotions for the iPad with Wifi+4G say buyers can connect to a 4G mobile data network in Australia with a SIM card, but that is not the case, the regulator said in a statement.

An Apple spokeswoman in Sydney could not be reached immediately for comment.

Australia has only one 4G network from dominant telecoms firm Telstra (TLS.AX) but the network is on a different part of the communications spectrum that cannot connect to the iPad.

While the iPad is the clear market leader and the new version with its faster chips, fourth-generation wireless and a sharper display is only expected to cement Apple's lead, it has not been entirely smooth sailing for Apple.

It is waging a legal battle with a Chinese firm over the rights to the iPad trademark in one of the biggest growth markets.

The long-running dispute with Proview - a financially weak technology company that claims to have registered the trademark - is making its way through Chinese courts and has threatened to disrupt iPad sales.

In Australia, a small but a key launch market for Apple products, it lost a bid to ban the sales of Samsung Electronics Co (005930.KS) Galaxy tablet late last year.

That battle is part of bruising global patent war between the two firms which spans about 30 legal cases in 10 countries.

The Australian regulator's move is unlikely to hamper iPad sales in Australia, though it could force to tweak its promotional campaigns.

(Reporting by Narayanan Somasundaram; Editing by Kim Coghill)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

New Direction

REUTERS SHOWCASE

Upbeat on S5

Upbeat on S5

Samsung executive says Galaxy S5 to outsell S4, sees Q2 rollout for Tizen phone.  Full Article 

Mobile Safety

Mobile Safety

Smartphone makers, carriers embrace anti-theft initiative.  Full Article 

Bitcoin Saga

Bitcoin Saga

Defunct bitcoin exchange Mt. Gox files for liquidation - WSJ.  Full Article 

Yahoo Result

Yahoo Result

Yahoo's growth anemic as turnaround chugs along.  Full Article 

Tech Acquisition

Tech Acquisition

Twitter buys social data provider Gnip, stock soars.  Full Article 

Leave Steve Out

Leave Steve Out

Keep Steve Jobs' personality out of trial - tech companies.  Full Article 

Beating Estimate

Beating Estimate

Intel's first-quarter net profit falls but beats Street.  Full Article 

Alibaba Result

Alibaba Result

Alibaba's growth quickens in time for landmark U.S. IPO.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage