Apple Inc. offered refunds on Wednesday to customers in Australia, who thought their new iPad was compatible with the superfast 4G network offered by dominant local carrier Telstra Corp.

The offer came after Australia’s consumer watchdog took legal action over what it said were “misleading” advertisements for the latest in the U.S. company’s tablet computer series.

The Competition and Consumer Commission alleged that advertising was misleading because “it represents to Australian consumers that the product [can] connect to a 4G mobile data network in Australia when this is not the case.”

Apple’s lawyers, before a hearing in the Federal Court in Melbourne, argued that Apple never said the new iPad would connect with Telstra’s 4G network. In the week before the March 16 launch of the latest iPad, Telstra spokesman Craig Middleton told reporters the new iPad was not compatible with the 4G network.

Apple told the Federal Court that it would publish a clarification that the new iPad was not compatible with the network.

Apple attorney Paul Anastassiou told the court that the company expected that very few, if any, customers would seek a refund claiming they were misled.

The hearing is continuing. The commission said before proceedings began that it was “seeking final orders, including injunctions, pecuniary penalties, corrective advertising and refunds to consumers affected.”

Keywords: Apple iPad