Samsung in hot water over Australian phone ads
Samsung in hot water over Australian phone ads.And the other think Australia the consumer watchdog sued Samsung Electronics Co Ltd Australian unit for allegedly cheating consumers by promoting waterproof Galaxy smartphones as being suitable for use in swimming pools and surfing.
The largest smartphone manufacturer in the world did not know or had not sufficiently tested the effects of exposure to saltwater or swimming pools on phones when commercials showed them completely submerged, according to the Australian Commission’s request Competition and Consumer Affairs (ACCC).
This case is the first to be filed by a major regulator and could result in multi-million dollar fines. It focuses on more than 300 ads in which Samsung has shown that their Galaxy phones were used at the bottom of pools and in the ocean.
“The ACCC alleges that Samsung’s misrepresented and misleading ads with Galaxy phones could be used or exposed to all types of water … while this was not the case,” said the president. . ACCC’s Rod Sims in a statement on Thursday.
Samsung has stated that it defends its advertising, complies with Australian law and defends its cause.
The South Korean electronics giant spent a lot of money on advertising to rebuild the public’s confidence in its high-end smartphones after the expensive removal of its Galaxy Note 7 device on fire in 2016.
It is expected to announce its preliminary quarterly results on Friday, while it should largely mark a fall in profits due to falling prices of chips.
Samsung in hot water over splashy Australian phone ads and etc
Samsung’s claims of water resistance have been the subject of scrutiny in 2016, when the influential consumer magazine Consumer Reports said the Galaxy S7 phone, which appears engulfed in an aquarium in commercials, does not did not pass the immersion test. .
The company attributes it to a manufacturing defect, which affects a small number of phones, which it repairs quickly. But online customers have continued to report problems, show the forum’s comments.
Some consumers damaged their phone when they were exposed to water and Samsung refused to comply with the warranty claim, ACCC said in the lawsuit, although Samsung said it complied with all its obligations in warranty under Australian law.
The regulator also stated that Samsung’s advice to Galaxy model users that the phones could not be used at the beach or at the pool suggested that the company considered that the water could cause damage.
“Samsung has shown the Galaxy phones used in situations that should not attract customers,” Sims said. “We believe that Samsung’s ads have deprived consumers of an informed choice and have given Samsung an unfair competitive advantage.”
ACCC alleges violations of the law in more than 300 advertisements. If proved, each September 1, 2018 offense could result in a fine of up to A $ 10 million ($ 7 million), triple the profit of driving or 10% of turnover. annual.
Offenses prior to September 1, 2018 can result in fines of up to $ 1.1 million. His rival Sony filed a class action in the United States over similar claims for its Xperia smartphone lineup in 2017, promising refunds in which phones would have failed. ($ 1 = 1.4223 Australian dollar)