The Australian unit of Samsung Electronics Co Limited has been sued by the Australian consumer watchdog for allegedly misleading consumers by claiming water-resistant Galaxy smartphones as suitable gadgets to be used in swimming pools & surf.
The Australian Competition & Consumer Commission lawsuit stated that largest smartphone maker of the world had not sufficiently testes the effects of the salt water or pool exposure on its phone or did not know when displayed in its ads phones being fully submerged in the water.
This is the first filed case by a major regulator and could result in an enormous loss of multi-million dollar fines. It centers on over 300 advertisements in which Samsung displayed its Galaxy phones being used at the bottom of swimming pools & even in the ocean.
Chairman of the Australian Competition & Consumer Commission ‘Rod Sims’ said in a statement on Thursday that the ACCC alleges Samsung’s ads misleadingly & falsely represent their Galaxy smartphones would be suitable for the exposure to or use in, all types of water when this was not the true case.
Samsung, on the other hand, said that it is standing by its advertising, complying with the Australian law & will be defending the case.
In order to rebuild the faith of the public in its premium smartphones following the expensive recall of its fire-phone Galaxy Note 7 devices three years back, the South Korean electronics giant has invested heavily on advertising.
Samsung is due to declare its preliminary quarterly earnings on Friday when it greatly expected to flag a drop in profits due to a reduction in chip prices.
Water resistance claims of Samsung came under strict investigation as early as 2016 when the influential United States magazine reports stated the Samsung Galaxy s7 phone which in the commercials appeared to be dunked in the fish tank actually failed an immersion test.