Apple penalised $2.25 million for misleading "iPad
with WiFi + 4G" claim
The Federal Court has followed the ACCC's lead and taken
another massive bite out of Apple for advertising the new iPad as
"4G" compatible even though it doesn't actually
connect to any 4G networks.
The Court ordered Apple pay $2.25 million in penalties for
misleading its customers.
This is a good get for the ACCC given the decision is the fifth
penalty handed down over $1 million since civil pecuniary penalties
for consumer protection matters were recently introduced.
No doubt Apple are pretty rotten about the whole thing, but no
sign that they'll be a-peeling.
TPG penalised $2 million for misleading broadband
Telco and internet providers have been regularly appearing on
the ACCC's menu of late. Last year we told you how TPG got done
for misleading its customers into thinking they could sign up to
its "$29.99 Unlimited ADSL2+" campaign without acquiring
any additional service or paying any additional monthly fee.
The internet plan was in fact $59.99 per month because the
service was only available when purchased with home line rental
costing $30 per month.
The Court has now handed down its penalty order and it's a
biggen, $2 million to be precise.
WiFi Ready or not? Manufacturers clarify
The definition of "ready" in the dictionary is
"completely prepared" or "fit for immediate action
or use". You can see why the ACCC got pretty cranky pants when
audiovisual manufacturers included terms like "WiFi
Ready" and "Wireless LAN Ready" for their WiFi
televisions and Blu Ray players without informing customers about
the need to purchase an additional WiFi adaptor.
However, when the ACCC said "jump", 5 top audiovisual
manufacturers (Sony, LG, Panasonic, Samsung and Sharp) said
"how high?" and agreed to remove the offending terms or
add qualifiers like "Wireless adaptor required' to their
The lesson? When you say ready, you better mean ready. The ACCC
ACCC fights for small businesses
Any marketing guru will tell you that the best marketing ploy is
harassment, deceit and coercion! Well, maybe not. But that's
what the Federal Court found that Elite Publishing Group, Wiltshire
Publishers, Exclusive Media & Publishing and their director,
Andrew Clifford did after they contacted small businesses and said
they had already paid or agreed to advertising in one of their
magazines when they hadn't.
The companies then sent a document to the businesses and said
that by signing it they would get free copies of the magazine.
Instead, they demanded $500 for each signed document, saying it was
actually an agreement to buy advertising services.
That's harassment. And the penalty? A whopping $500,000.
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