Samsung agrees to pay $14 million fine for misleading Galaxy ads | Samsung

Samsung has agreed to pay a $14 million superb for deceptive claims that seven of its Galaxy telephones are water resistant when the gadgets cease working after being utilized in swimming pools or ocean water.

Decide Michael Murphy has agreed to a settlement between the tech firm and the Australian Competitors and Shopper Fee (ACCC) within the long-running case that was launched in 2019on adverts for seven Galaxy cellphone fashions.

The competitors watchdog alleged that Samsung misled and deceived prospects with its allegations in regards to the telephones throughout greater than 300 adverts since February 2016. In courtroom on Thursday, Samsung’s lawyer, Nicholas de Younger, mentioned the complete account of the affected adverts got here to 684.

On-line, tv, and billboard commercials have proven that telephones are water resistant and utilized in swimming pools and seashores, though telephones usually are not appropriate to be used in pool water or saltwater.

Agreed settlement of a a lot smaller set of adverts. Samsung agreed in settling the case that 9 adverts for seven gadgets promoted over the two-and-a-half years between 2016 and 2018 had been deceptive.

The corporate admitted that if the gadgets had been utilized in saltwater or swimming swimming pools, there was a “tangible potential for injury because of corrosion within the cellphone’s charging port,” ACCC lawyer Karen Van Proctor informed the courtroom.

Throughout that point, Samsung offered 3 million Galaxy cellphone fashions included within the settlement in Australia.

The issue will come up when individuals go to cost their cellphone whereas there’s nonetheless water within the charging port, although a warning seems on the cellphone advising the consumer to not cost it. The courtroom heard that Samsung has since fastened this concern with {hardware} and software program modifications on later Galaxy cellphone fashions.

Whereas there was some info supplied to the courtroom in regards to the variety of views the Fb and Twitter adverts obtained — with lots of of 1000’s of views every — the courtroom heard that there was no means of figuring out what number of shoppers purchased the gadgets from the again of the system. Ads, nor the quantity of people that have had a cellphone malfunction because of utilizing it in pool or ocean water after which charging it.

In agreeing to the $14 million settlement, Murphy mentioned many shoppers would have used their telephones the best way they seem in adverts, counting on these acknowledgments.

He mentioned the $14 million can be a deterrent and was a “actual and sufficient chunk” for 14% of Samsung Australia’s income over the previous six years. He additionally criticized the cellphone maker for under cooperating in fixing the issue not too long ago after years of opposition to the ACCC case.

He criticized the best way merchandise are sometimes marketed in Australia, saying the Federal Courtroom usually hears circumstances the place merchandise are oversold to shoppers in advertising campaigns.

Samsung was ordered to pay $14 million plus a contribution of $200,000 to ACCC prices inside 30 days of the order.

Gina Kass-Gottlib, chair of the Coordination and Financial savings Committee, welcomed the ruling.

“Samsung Australia adverts selling their Galaxy telephones present individuals utilizing their telephones in swimming pools and sea water, even if this might find yourself inflicting vital injury to the cellphone,” Cass-Gottlieb mentioned.

“This penalty is a strong reminder to companies that each one product claims have to be confirmed. The ACCC will proceed to take enforcement motion in opposition to corporations that mislead shoppers with claims in regards to the nature or advantages of their merchandise.”

A Samsung spokesperson mentioned the corporate examined the merchandise extensively with sea and pool water, however welcomed the case being closed.

“Samsung strives to supply the very best expertise for all of its prospects. Samsung regrets if any Galaxy customers expertise a problem with their system because of the issues lined on this case.”

The Samsung gadgets included within the settlement are the Galaxy S7, S7 Edge, A5, A7, S8, S8 Plus, and Note8 telephones.