Looking at the advertisement, most consumers believe that Samsung offers water-resistance. (Image via: ZDNet)

Misleading Ads, Australian Regulator Sues Samsung

Alfonsus Adi Putra
Business & Industry
Electronic Device
Jul 04, 2019
1984
If you promote something, make sure that it actually lives up to its name. Once again, Samsung places itself in dire straits. In recent years, Samsung has been caught up in a vicious cycle, starting with the series of explosions of its Samsung Note 7 units, issues with Galaxy Fold, and now, it was sued because its advertisements are deemed misleading.

The Australian Competition and Consumer Commission (ACCC) stated on Thursday (4/7) that it is going to sue Samsung due to an allegation of misleading its consumers by stating that its Galaxies are water-resistant. The advertisements, piling up to 300 ads, stated that Samsung smartphones are water-resistant and can be used in the swimming pool or the sea.

The chairman of ACCC, Rod Sims, wrote in a statement that Samsung has been misleading its consumers by stating that the smartphones would endure in any type of water conditions, while it seems to be proven wrong later on. ACCC also pointed out that Samsung, in fact, has not done any testing to its phone to determine whether it is truly resistant in saltwater and freshwater exposures.

Should the lawsuit actually succeed, Samsung will lose another multi-million bout. The misleading ads should be proven true traced back from 1st of September 2018 until present days, will pile up to AU$10 million fines! That will be a 10% turnover of its annual sales and triple from its benefit.

In other words, Samsung has no choice either proving its ads right or… pay its dues.

ACCC testified that some consumers actually tested their phones underwater and found the result unsatisfying, and Samsung refused to replace it with the new ones according to its warranty. In addition, ACCC also pointed out that Samsung’s suggestion that its users should not use its products at the beach or pool meant that it was not water resistant in the beginning.

Stick and stones may break its bones, but Samsung denied those allegations. In addition, Samsung still stands with its water-resistant ads, and they will defend the claim, should they got a subpoena.

Source: https://uk.reuters.com/article/uk-australia-samsung-elec-regulator/australia-regulator-sues-samsung-says-water-resistance-ads-misleading-idUKKCN1TZ012?rpc=401&

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