Samsung fined $14 million for misleading claims about waterproofing of Galaxy phones
In 2019, the Australian consumer watchdog and the Australian Consumer Commission, known as the ACCC, filed a case for advertisements related to 7 models of Galaxy smartphones Samsung proposed. The ACCC took the company to court for misleading consumers with claims about its smartphones that appeared in more than 300 ads since February 2016.
According to Neowin, these ads on social media , online space, television, billboards, brochures and other media have been published showing Galaxy phones as water resistant. In these ads, Galaxy phones were used in swimming pools and beaches; While Samsung has also introduced them as products that last up to 1.5 meters of water for 30 minutes.
Samsung has agreed to settle the case that 9 ads for 7 Galaxy series devices were misleading. It also admitted that there was a possibility of the devices being damaged if they were used in salt water or swimming pools. Needless to say, since then, this company has fixed these problems with hardware and software changes in the next models of Galaxy series phones.
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Judge Michael Murphy Agreement between Samsung and approved by the Australian regulatory authority. He said many consumers relied on dealers to use their phones as shown in these ads. He added that the $14 million fine would act as a deterrent and, in fact, was 14% of Samsung Australia’s profits over the past six years. Also, he announced that the company had recently cooperated with the ACCC case to resolve the matter after years of opposition. ACCC Chairman Gina Kassgottlieb welcomed the ruling and said :
This fine serves as an important warning to businesses that all product claims must be substantiated. The ACCC will continue to take enforcement action against businesses that mislead consumers with claims about the nature or benefits of their products.
Samsung will pay a fine of $14 million within 30 days, in addition to a $200,000 settlement fee. will pay the ACCC’s costs.