LG Electronics Australia Pty Ltd(LG) has been slapped with a $160,000 fine for making misleading representations to two consumers.
In June 2018, the Full Federal Court partially upheld an appeal by the ACCC against an earlier judgment dismissing the ACCC’s case.
The ACCC instituted proceedings against LG in December 2015 alleging, in relation to complaints about defects with its televisions, LG misrepresented to consumers, retailers or repairers that the remedies available to consumers were limited to the LG manufacturer’s warranty.
The Federal Court handed down the fine after initially dismissing the case in 2017 and was partially upheld by the Full Federal Court in June 2018.
The Full Court found that LG made misleading representations to two consumers who believed they had purchased faulty televisions, when it implied on phone calls they had no rights other than those under LG’s manufacturer’s warranties.
“Consumer guarantee rights are separate to warranties offered by manufacturers and will always be available to consumers who find they have been sold a faulty product,” ACCC Commissioner Sarah Court said.
“The Court’s decision is a reminder that making misleading statements about consumer guarantee rights, even to only one or two consumers, can result in penalties being imposed.”
