ACCC takes action against LG for alleged false or misleading representations relating to consumer guarantees

Yay ACCC!

The Australian Competition and Consumer Commission has commenced proceedings in the Federal Court against LG Electronics Australia Pty Ltd (LG) alleging that LG made false or misleading representations to consumers about their rights in relation to faulty LG products.

It is alleged by the ACCC that, 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;
• where the defect occurred after the LG manufacturer’s warranty had expired:
◦ the consumer was only entitled to a remedy if the consumer paid for the costs of assessing the failure; and/or
◦ LG had no further obligations, and any step it took in relation to the television was an act of goodwill; and/or
◦ the consumer was only entitled to have the television repaired (and not to a refund or a replacement); and/or
◦ the consumer was liable for the labour costs of the repair.

“When consumers buy products, they come with a consumer guarantee under the Australian Consumer Law that they will be of acceptable quality. This guarantee is in addition to any express manufacturer’s warranty,” ACCC Chairman Rod Sims said.

“Although the manufacturer’s warranty only applies for a specified period of time, consumers will often still be entitled under the consumer guarantee to a repair, refund or replacement after the manufacturer’s warranty ends.”

http://www.accc.gov.au/media-release/accc-takes-action-again…