LG Electronics reprimanded for misleading Australian consumers

LG Electronics, which sells televisions in Australia, was reprimanded in a court case brought by the ACCC. Photo / 123RF

One of Australia's biggest television brands has been reprimanded by the full Federal Court for misleading consumers about their rights to have TVs repaired or replaced.

The Australian Competition and Consumer Commission took LG Electronics to court in 2015, claiming it had made false statements to consumers about their right to have faulty televisions repaired or replaced.

While that court case was dismissed in September last year, an appeal in the Federal Court has now found LG representatives did make two false statements to consumers, and the company should not have trained staff to avoid all mention of Australian consumer guarantees unless they were raised by customers.

ACCC Commissioner Sarah Court said the ruling should "serve as a warning to businesses they run a risk if they choose not to mention the ACL consumer guarantees".

"When consumers buy products, they come with a consumer guarantee under the Australian Consumer Law that they will be of acceptable quality. Manufacturer's warranties exist in addition to the consumer guarantee rights," she said.

"Consumers will often still be entitled under the consumer guarantee to a repair, refund or replacement when the manufacturer's warranty does not apply or has come to an end."

The Law states products sold since 2011 should be fault-free, look acceptable, work as expected, and repairs should be available for a reasonable period of time after purchase.

Consumers also have a right to claim a remedy directly from a retailer if a product does not meet the criteria.

The Federal Court dismissed other parts of the ACCC's case against LG, however, including penalties, corrective notices, and costs.