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 advertising
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 promotions
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 promotional material.
The lesson? When you say ready, you better mean ready. The ACCC has spoken.
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.
We do not disclaim anything about this article. We're quite proud of it really.