Apple has refunded Australian iPad 4G owners because the iPad is not compatible with the country's 4G system.

Australia's consumer watchdog, the Australian Competition & Consumer Commission, accused Apple of misleading Australian iPad buyers by selling the "iPad with Wifi + 4G" when it can only operate on 3G there.

The BBC reports that the ACCC said on Tuesday: "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".

Australia's existing 4G network uses the 1800MHz frequency, which the iPad is not designed to operate on.

The new iPad is also incompatible with the UK's proposed broadband frequencies and all European 4G frequencies.

At the iPad product launch, Apple CEO Tim Cook said that the 4G model will deliver increased connection speeds to 3G where 4G is not available.