APPLE Australia has agreed to post signs wherever the new iPad is sold clarifying that the device does not work on Australian 4G networks.
It has also agreed to email anyone who purchased the new iPad stating those facts and offer refunds.
The voluntary undertaking comes after the competition watchdog launched legal action in the Federal Court in Melbourne seeking orders stopping Apple from selling the device using the product name ''iPad with WIFI + 4G''.
The Australian Competition and Consumer Commission earlier asked that Apple put stickers on all ''iPad WIFI + 4G'' boxes, but this was part of an application dismissed in favour of the voluntary undertaking.It said this name could mislead consumers because the iPad does not work on either of the 4G networks in Australia.
Apple has agreed to provide signage to all resellers by 5pm on April 5, with the phrase: ''This product supports very fast cellular networks. It is not compatible with current Australian 4G LTE networks or WiMax networks''.
Colin Golvan, SC, acting for the ACCC, argued for a single sentence without any reference to the iPad's capabilities.
However, Apple argued that consumers may think the device would not work on any mobile broadband networks and the ACCC's proposal was ''disparaging of its very good product''.
Justice Mordecai Bromberg set a trial date of May 2 for the parties to determine whether Apple had broken Australian law.
The outcome of this trial could lead to further legal action.
Meanwhile, the parties will meet on April 18 for mediation.
Apple potentially faces penalties of $1.1 million per contravention of Australian Consumer Law.
However, the number of alleged contraventions would not be known until the ACCC filed a statement of claim next week.