The ACCC has accepted a section 87B undertaking from Samsung Electronics Australia Pty Ltd (Samsung), in respect of misleading comparative energy savings representations between its Bubble Wash washing machines and conventional washing machines. The energy savings representations by Samsung were made to consumers in an in-store demonstration kit incorporating a promotional video which was displayed at approximately 90 retail stores in the period from March 2011 to October 2011.
The ACCC was concerned about this conduct because consumers could be misled into believing that Samsung's Bubble Wash washing machines offered significant energy savings when using cold water compared to conventional washing machines using cold water, when this was not the case. Consumers’ purchasing decisions can be influenced by energy savings claims in terms of perceived environmental benefits and household cost savings. It is important that 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.
To address the ACCC's concerns, Samsung provided the ACCC with a court-enforceable undertaking which requires Samsung to offer an extension of the manufacturer's warranty from 2 years to 5 years for those customers who, during the period from 1 March 2011 to 31 October 2011, purchased a Bubble Wash washing machine from the stores that displayed the demonstration kit and promotional video. Samsung has undertaken to send a letter to each of the affected customers (where iris possible to identify them) advising of the extension of the manufacturer's warranty and to place a notification in this regard on Samsungs website. Samsung is also required to review and enhance its trade practices compliance program.
