AN ELECTRONICS manufacturer with a history of making false environmental claims has been caught doctoring fridges to make them appear more energy efficient.

LG Electronics has agreed to compensate potentially thousands of consumers after two of its fridges - models L197NFS and P197WFS - were found to contain an illegal device that activates an energy-saving mode when it detects room conditions similar to those in a test laboratory.

The so-called circumvention device was discovered last month by the consumer advocacy group, Choice.

The device detects test conditions - typically 22 degrees - and activates the energy-saving mode, creating the impression of lower running costs and energy usage. The devices have been banned in Australia since 2007.

In reality the fridge, which has a 3.5 star energy rating, costs an extra $250 to run over 10 years and can severely affect food quality because the fridge can shut off when opened.