Industry watchdog the Australian Competition & Consumer Commission has taken action against LG Electronics for allegedly misleading consumers on their rights in relation to replacing faulty products.
ACCC claims that LG told customers that if a defect occurred on one of its televisions after warranty had expired, customers would only be entitled to a remedy if they paid for the cost of assessment.
Under Australian consumer law, customers have a guarantee of acceptable quality beyond a manufacturer’s warranty.
ACCC also alleges that LG told customers they were only entitled to a repair, not a refund or replacement, and the customer would be liable for the cost of the repair.
Consumer law guarantees that if a product is not of acceptable quality, customers are entitled to a refund, replacement or repair at the expense of the manufacturer or reseller.
ACCC chairman Rod Sims said that consumers were often entitled to a remedy to faulty goods long after the manufacturer’s warranty had ended.
”The ACCC will not hesitate to take appropriate action against manufacturers who misrepresent consumers’ rights and remedies for defective products under the Australian Consumer Law,” said Sims.
“The Australian parliament has conferred these important rights on consumers, and these rights should not be undermined by misrepresentations.”
The first hearing is scheduled for 5 February in the federal court of Melbourne.
An LG spokesperson told CRN: “Due to the ongoing nature of these proceedings, no further comment will be made at this stage except to say that LG is committed to its customers and compliance with its obligations under the Australian Consumer Law.”