Court Penalizes Samsung Australia For Misleading Smartphone Ads

A court penalized Samsung Electronics Co, Ltd's SSNLF Australian unit A$14 million ($9.65 million) for nine misleading advertisements regarding a water-resistance feature in some of its smartphones, Reuters reports citing Australia's competition regulator.
Between March 2016 and October 2018, Samsung Australia ran advertisements showcasing the water-resistant feature, making them ideal for pools or sea water.
The regulator, however, received multiple complaints regarding malfunctioning smartphones from water exposure.
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Samsung Australia admitted to misleading buyers of some of its 'Galaxy' phones about the water-resistance level, the Australian Competition & Consumer Commission (ACCC) said.
The regulator first prosecuted Samsung Australia in July 2019. Samsung Australia claimed a clean chit for its newer, current models.
Samsung and the ACCC agreed that changes made to newer models of the smartphones launched in Australia in March 2018 did not face such risks, Samsung Australia clarified.