LG pays $160k for misleading claims

On consumer rights.

LG Electronics has been hit with $160,000 in penalties by the Federal Court for making misleading representations to two consumers about their consumer guarantee rights.

The Full Court found that LG implied to two consumers, who believed they had purchased faulty televisions, that they had no rights other than those under LG’s manufacturer warranties.

Consumers who purchase faulty products have rights to repair, replacements or refunds under the Australian Consumer Law that cannot be excluded or modified by a company’s warranty or general statements.

ACCC commissioner, Sarah Court said 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.

“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.”

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