Australia's consumer watchdog has taken Apple to court for what it describes as "false advertising" because the tablet does not work on Australia's 4G network.
There were similar concerns when the device was launched in the UK on March 16th, as it will not work on the UK's proposed 4G network due next year either.
Apple has offered Australian customers a refund if they felt they were misled, and the firm's lawyers say they are willing to publish a clarification.
However, the company does not accept that it misled customers.
The Australian Competition and Consumer Commission (ACCC) says: "Apple's recent promotion of the new 'iPad with wi-fi + 4G' is misleading because it represents to Australian consumers that the product can, with a sim card, connect to a 4G mobile data network in Australia, when this is not the case."
More after the break
The watchdog has lodged a complaint at the Federal Court in Melbourne. The matter will go to a full trial on May 2nd.