ACCC appeals LG TV case finding

THE competition watchdog is appealing after a court dismissed its allegation that LG Electronics misled customers about their warranty rights on faulty televisions.

The Federal Court in September dismissed the Australian Competition and Consumer Commission’s allegations that LG made false or misleading representations to certain customers about their rights in relation to faulty products. The ACCC, which launched proceedings against LG in December 2015, argued that when a defect occurred after the LG warranty had expired, customers were told they would have to pay the costs of assessing the repair and that the company had no further obligations.

Customers were also told they were entitled to have a television repaired but not entitled to a refund or a replacement, and were liable for any labour costs to fix the problem.

The Federal Court dismissed the ACCC’s allegations, finding that LG was not obliged to tell customers about their options under Australian Consumer Law. But ACCC deputy chair Delia Rickard said the watchdog had lodged a notice of appeal, saying it was important to seek clarity from the Federal Court on this case.

“In particular, this appeal is about the extent to which manufacturers should inform people seeking a remedy for a faulty product about their consumer guarantee rights,” Ms Rickard said in a statement.

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