Apple Agrees to Pay $2.25 Million for Misleading Australian Customers

Apple has reportedly agreed to pay a $2.25 million penalty for misleading the Australian public over the new iPad's ability to access 4G networks, says The Australian.

Despite offering to refund all consumers that were confused by the iPad + 4G naming convention, the ACCC decided to pursue to the matter further in court and has been successful in getting Apple to agree to the large fine.

The Australian Competition and Consumer Commission informed the Federal Court about the proposed settlement which would have Apple pay the $2.25 million penalty and contribute $300,000 towards the commission's legal costs.


Justice Bromberg has not yet agreed to approve the settlement deal.

"I don't know whether we're talking about a corporation that makes $10 million or $300 million," he said. "How do I know that (the penalty) is meaningful for Apple if you don't put before me any idea of what its financial position is?"

Apple's lawyer defended the $2.25 million figure as appropriate, saying, "Meaningfulness, your Honour, is not dependent on wealth. "Even for the largest corporation one can envisage, this penalty is more than adequate having regard to the conduct and all the other circumstances," he said. "What does it matter whether it (Apple) has assets of $100 million or $50 million?"

Judge Mordy Bromberg is asking for more information by Wednesday.


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