Australia’s consumer watchdog alleges electronics giant deceived customers with claims made in more than 300 ads

This article is more than 1 year old

This article is more than 1 year old

The consumer watchdog is taking Samsung to court, accusing the technology company of misleading consumers by telling them that many of the four million Galaxy phones sold in Australia were water resistant, while knowing they were not.

The Australian Competition and Consumer Commission has instituted federal court proceedings against Samsung, alleging the electronics giant misled and deceived customers with its claims about various Galaxy phones across more than 300 advertisements since February 2016.

Ads across social media, online, TV, billboards, brochures and other media depicted the phones as being water resistant and showed them being used at pools and beaches, while Samsung also advertised them as being water resistant up to 1.5 metres for 30 minutes.

To ban or not to ban: Victoria's mobile phone move divides experts Read more

One ad showed a phone being used under water at a pool, another described “capturing your Sunday surf session at the beach”, and another showed a man floating on an inflatable with a water-splashed phone on his sternum.

Facebook Twitter Pinterest A Samsung advertisement inviting Galaxy A5 customers to capture their ‘Sunday surf session at the beach’.

The ACCC said the ads were false, misleading and deceptive, because the phones were not suitable for use in all types of water, which Samsung acknowledged on its website by advising against using the Galaxy S10 at the beach or a pool.

“Samsung showed the Galaxy phones used in situations they shouldn’t be to attract customers,” the ACCC commissioner, Rod Sims, said on Thursday.

“Under the Australian consumer law, businesses cannot mislead consumers about their products’ capabilities.”

Samsung said it intends to defend the proceedings.

“Samsung stands by its marketing and advertising of the water resistancy of its smartphones,” Samsung Australia said in a statement.

“We are also confident that we provide customers with free-of-charge remedies in a manner consistent with Samsung’s obligations under its manufacturer warranty and the Australian Consumer Law.”

The ACCC alleges that Samsung did not sufficiently test its phones to back its advertised claims, and denied warranty claims from users whose phones were damaged in water.

Samsung’s Galaxy phones advertised as water resistant typically cost more than those that are not, the ACCC said.

“Samsung itself has acknowledged that water resistance is an important factor influencing Australian consumer decisions when they choose what mobile phone to purchase,” Sims said.