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LG Electronics A Winner As ACCC Loses Another Case


For the second time in a week, the Federal Court has dismissed a case brought by the Australian Competition and Consumer Commission.

On Friday the court dismissed proceedings brought by the ACCC against LG Electronics Australia.

The ACCC had claimed that LG had made false or misleading representations to consumers about their rights in relation to faulty LG products, especially defects in some of its televisions.

Two days earlier – on Wednesday, August 30 – the court had dismissed proceedings brought by the ACCC against Medibank Private, claiming that Medibank made false, misleading or deceptive representations and engaged in “unconscionable conduct” in failing to notify members of a decision to limit benefits for in-hospital pathology and radiology services.

In the LG case, ACCC had argued that LG had misrepresented to consumers, retailers, or repairers that remedies available to consumers were limited to the LG manufacturer’s warranty; and where a defect occurred after the warranty had expired the consumer was only entitled to a remedy if the consumer paid for the costs of assessing the failure and that LG had no further obligations.

ACCC deputy chair Delia Rickard said the commission “is carefully considering the judgment”.

She stressed that consumers should be aware that, even if a manufacturer’s warranty expires, they may still be entitled to a repair, refund, or replacement under the Australian Consumer Law on guarantees.

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