After the Australian Competition and Consumer Commission accused it of misleading advertising over one key aspect of its new iPad, Apple Inc has decided to offer a refund to its buyers in Australia.

The Australian Competition and Consumer Commission has taken legal action to ensure Apple makes consumers aware its third-generation iPad cannot connect to a 4G mobile data network in Australia due to technical incompatibility, reports Reuters.

Apple agreed to post warnings that its new iPad "is not compatible with current Australian 4G LTE networks and WiMAX networks" over the next week.

In documents lodged with the court, the ACCC says Apple advertised that "iPad with WiFi can with a SIM card, connect to a 4G mobile data network in Australia, which it cannot do".

Apple "seems to accept that there''''s a lack of compatibility," said Colin Golvan, senior counsel for the ACCC said at the Federal Court inMelbourne. "It's been completely indifferent to the Australian market," he said.

A trial has been set for May 2, with a hearing a preceding that on April 16.