LG Electronics Australia will correct misleading representations it made over four models of their washing machines.
The Australian Competition and Consumer Commission has found that between May 2004 and August 2004, LG Australia released certain washing machines for sale, claiming they were "4A Rated" by Water Services Association of Australia (WSAA).
The machines had not been certified at the time of sale. Further, such certification would have allowed consumers who bought the machines to claim a $150 Waterwise Rebate through the WA Water Corporation.
LG also issued a brochure in June 2004 which said the machines were 4A certified and published similar information on its Australian website.
The machines involved are:
LG 7.5kg Front Loader model WD 1025FB
LG 7kg Front Loader model WD 1470FD
LG 8kg Front Loader model WD 1480RD
LG 9kg Top Loader model WD 1290RD
LG Australia has given the ACCC court-enforceable undertakings and will write to all retailers who were supplied with the machines to explain the effect of its conduct. A corrective notice will also appear on the LG Australia website.
Western Australian consumers, who bought a machine and approached the Water Corporation for a $150 Waterwise Rebate, may have had their claims rejected, as certification was not complete until 28 August 2004. Affected consumers should now reapply, if they have not done so already.
"Consumers are becoming increasingly conscious of environmental issues in their every day lives", ACCC Chairman, Mr Graeme Samuel, said today. "Environmental benefits figure highly in the mind of consumers and may influence their purchasing decision.
"Also, in this case WA consumers may have initially been denied a rebate which may have influenced their purchase.
"It is fundamental that companies who sell products which are promoted as being environmentally friendly make sure all their claims are accurate and can be substantiated".