Apple agrees to iPad refunds in Australia

Is Apple misleading consumers by touting its new iPad as 4G-capable? Apparently, an Australian agency thinks so and has initiated legal action.

The Australian Competition and Consumer Association (ACCC) has alleged that Apple is violating the country's Consumer Law by misleadingly labeling its new iPad as 4G-capable. The ACCC is seeking an injunction against sales and for Apple to be fined. It also wants the Cupertino-based company to correct its advertising and refund affected customers.

According to CNET Australia, Apple is willing to refund iPad owners who believe that they have been misled, and to send out clarification emails. Apple's lawyer Paul Anastassiou told the court that the company "did not have an iPad that would meet consumers' requests to use the 4G network."

ZDNet Australia reports that carrier Telstra offers 4G service on the 1.8GHz frequency band, whereas the new iPad's 4G is only compatible with the 700MHz or 2.1GHz bands. We're already aware that the new iPad's LTE feature is useless in Asia, for the same reason--different frequency bands.

However, there has been no such complaints of Apple's "misleading advertising" in Singapore, even though the claims are the same on the Apple Web site. Seah Seng Choon, executive director of the Consumers Association of Singapore (CASE), said in a phone interview that the consumer watchdog will look into the matter if any case is filed.

This could be considered a small chink in Apple's legal woes in Australia, which was one of the first countries to receive the new iPad on Mar 16. Last year, it lost a legal battle Down Under to halt sales of the Samsung Galaxy Tab 10.1.

However, Australians can take heart: CNET's global tests have proved that you don't need 4G LTE to get fast download speeds.