Samsung Electronics Australia provides ACCC with undertaking over energy savings claims

Samsung Electronics Australia Pty Ltd has provided the Australian Competition and Consumer Commission with a court enforceable undertaking following ACCC concerns that Samsung may have breached the Australian Consumer Law by misrepresenting the energy savings of its Bubble Wash washing machines compared to conventional washing machines.

The ACCC’s concerns relate to the energy savings representations made by Samsung in an in-store demonstration kit featuring a promotional video which was displayed at approximately 90 retail stores between March 2011 to October 2011. A list of these stores is attached.

The ACCC considers that the comparative energy savings representations made in the demonstration kit and incorporated promotional video were likely to have been misleading as Samsung represented that its Bubble Wash washing machines when using cold water offered significant energy savings over conventional washing machines using cold water, when this was not the case.

The machines involved are:

• Samsung 7.5kg Front Loader model WF0754W7V
• Samsung 8.5kg Front Loader model WF0854W8E

For consumers who purchased either of these Samsung washing machine models from the stores that displayed the demonstration kit and promotional video during the period from 1 March 2011 to 31 October 2011, Samsung has undertaken to extend the manufacturer’s warranty from 2 years to 5 years.

As part of the undertaking Samsung will write to these consumers, where it is possible to identify them, offering an extension of the manufacturer’s warranty. Samsung will also place on its website a notification advising of the extension of the manufacturer’s warranty.

“Consumers’ purchasing decisions can be significantly influenced by energy savings claims both in terms of perceived environmental benefits and household costs savings,” ACCC Chairman Rod Sims said.

“It is important for consumers not to be misled by manufacturers’ comparative advertising claims.”

“Where a company compares the energy savings that can be obtained from its own product with other competing products on the market, the comparisons made must be accurate, thereby enabling consumers to make informed purchasing decisions,” Mr Sims said.

Stores which displayed SAMSUNG demonstration kit

ACT

Harvey Norman Fyshwick
Harvey Norman Woden
The Good Guys Belconnen
The Good Guys Tuggeranong

NSW

Bing Lee Bankstown
Bing Lee Carlingford
Bing Lee Moore Park
Bing Lee Old Guildford
Bing Lee Rhodes
Harvey Norman Alexandria
Harvey Norman Auburn
Harvey Norman Caringbah
Harvey Norman Castle Hill
Harvey Norman Maitland
Harvey Norman Penrith
Harvey Norman Warrawong
Joyce Mayne Bennetts Green
The Good Guys Alexandria
The Good Guys Auburn
The Good Guys Blacktown
The Good Guys Campbelltown
The Good Guys Casula
The Good Guys Coffs Harbour
The Good Guys Warners Bay
The Good Guys Warrawong

NT

Harvey Norman Darwin

SA

Harvey Norman Marion
Harvey Norman Munno Para
Harvey Norman Electric Noarlunga
Peters The Good Guys Noarlunga
Radio Rentals Prospect
The Good Guys Edwardstown
The Good Guys Mile End (Brooks Muir's )
The Good Guys Gepps Cross
The Good Guys Hectorville

QLD

Clive Peeters Macgregor
Harvey Norman Toowoomba
Harvey Norman Carindale
Harvey Norman Cairns
Harvey Norman Bundall
Harvey Norman Townsville
Retravision Beerwah
Retravision Kingaroy
Retravision Cairns (Trading As Sydney H Turner Appliances)
Retravision-Carolans Nambour
Retravision-Webbers North Rockhampton
The Good Guys Browns Plains
The Good Guys Cairns
The Good Guys Capalaba
The Good Guys Helensvale
The Good Guys Mackay
The Good Guys Loganholme
The Good Guys Morayfield
The Good Guys Townsville

TAS

Clive Peeters Moonah
Coogans Moonah
Coogans Hobart
Harvey Norman Burnie
Harvey Norman Launceston
Harvey Norman Devonport
Harvey Norman Cambridge Park
Harvey Norman Hobart
Harvey Norman Launceston
Robert Ferguson Launceston

WA

Harvey Norman City West
Harvey Norman Joondalup
Harvey Norman Mandurah
Harvey Norman Mandurah Karratha St
Rick Hart Joondalup
The Good Guys Midland
The Good Guys Osborne Park
The Good Guys Rockingham
The Good Guys Cockburn
The Good Guys O’Connor