On Saturday, Australia’s Competition and Consumer Commission (ACCC) it will sue the Australian unit of Samsung Electronics Co Ltd. The federal watchdog claims the South Korean phone maker of misleading customers by promoting its Galaxy smartphones as water resistant. Even more, the ACCC alleges for the ads revealing Galaxy smartphones fit for use in swimming pools and oceanic water. The ACCC lawsuit shows Samsung did not know or sufficiently test the impacts of the pool and salt-water exposure on its smartphones. Meanwhile, the company has revealed phones fully submerged in the water sources.
Thus the first-ever case filed by a major regulator could result in lofty multi-million dollars fine or settlement. The lawsuit asserts more than 300 advertisements in which the South Korean phone maker has revealed its Galaxy phones being used at great pressure places like the bottom of sea and swimming pools. According to ACCC Chairman Rod Sims, the government watchdog claims Samsung’s ads unfairly and misleadingly depicted Galaxy phones usability in all types of water. The ACCC also noted customers damaged their phones after taking them into the water. Even more, the watchdog claims Samsung has denied performing warranty claims. As per sims, the phone maker displayed the Galaxy phones used in conditions they should not be to draw consumer attraction. The executive said they believe Samsung’s advertisements declined consumers a conscious decision. Addedly, the ads offered a biased competitive advantage to the company.
On the other hand, Samsung said it stands by its advertising. Even more, the company notes it has followed Australian law and would protect itself. Although the court case in another setback for the electronics giant. Before this, in 2016, the company faced reputational damage. At the time, Samsung’s Galaxy Note 7 smartphones undergone a massive and exclusive recall after finding the device fire-prone. After that incident, Samsung has spent massively on advertising to regain consumer trust in its flagship smartphones.