In Federal Court proceedings brought by the consumer watchdog in Melbourne today, lawyers for the computer giant said the company was willing to take steps to ensure consumers did not mistakenly buy the iPad 3 believing it could connect to Telstra's fastest wireless network.
Paul Anastassiou SC, representing Apple, said it would offer refunds and returns to customers "if they claim to have been in any way misled in relation to the reference to 4G."
"At no point in any promotional material for which Apple was responsible has Apple said at any time that the new Apple device is compatible (with Telstra 4G)," he said.
"No such representation in our submission is conveyed by the use of the acronym 4G in the name of the device.
"Prior to the launch of the product there was significant press pointing out that the device is not compatible with the Telstra 4G LTE network."
Mr Anastassiou said Apple agreed "for the sake of absolute clarity" to place a clarifying statement at the point of sale "making it plain that there is no claim made in relation to the device that it is capable of connecting with the Telstra 4G LTE network."
Apple has also agreed to send clarifying emails to customers who bought the new iPad, but is resisting moves to force it to put stickers on its packaging and publish corrective advertising.
The Australian Competition and Consumer Commission filed the case against Apple yesterday, alleging the new tablet labelled 'iPad WiFi + 4G' misled consumers because it cannot connect to a 4G mobile data network in Australia.
Telstra's 4G network operates on a 1800MHz frequency, while the iPad 3 only works on 4G frequencies currently available in the US and Canada and will not pick up an Australian 4G frequency until at least 2015.
Mr Anastassiou said the iPad could operate on superfast Telstra networks such as HSPA+ which met international definitions of 4G even if not called that in Australia.
Judge Mordy Bromberg said it was "more relevant" what the ordinary consumer would understand from the term '4G'.
Colin Golvan SC for the ACCC said Apple had "exacerbated confusion" among consumers and persisted with its advertising while knowing the iPad could not connect to 4G in Australia.
"The iPad should not be sold as compatible with the 4G network or by reference to the terminology '+4G'," he said.
"Apple does not have an iPad which would meet a consumer request for an iPad which operates using a sim card in the 4G network."
The court will resume this afternoon to hear whether there has been progress in negotiations between the parties.
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