LG Electronics Australia Pty Limited - s.87B undertaking

• In 2007 and 2009, LG applied for Energy Label registration for various refrigerator models. LG Australia subsequently marketed these Models with reference to a Projected Annual Energy Consumption (PAEC) of 738kWh/year.

The ACCC has conducted an investigation as to whether LG Australia's marketing of the various models with a Comparative Energy Consumption (CEC) of 738kWh/year give rise to concerns under the Act. In particular, the ACCC is concerned that LG Australia may have:

• represented that the CEC of the various models was 738kWh/year when it was not;
• represented that the CEC of the various models was significantly lower that it was; and
• misled the public as to the energy efficient characteristics of the various models;

The ACCC is also concerned that LG Australia's compliance systems failed to detect the conduct.

LG Australia wishes to responsibly address these concerns by offering an Undertaking in accordance with section 87B of the Act.

As part of court enforceable undertakings, LG Australia will:

• keep the compensation offers that they are currently offering consumers who purchased the specific models pursuant to the 2007 or 2009 Energy Label registrations open until at least 30 November 2010;
• ensure any energy saving feature is disabled during the testing process;
• test at least one model from each refrigerator family in accordance with the standard;
• test at least one unit from any new refrigerator model family prior to sale in Australia in accordance with the standard;
• test at least ten television models each year in accordance with the standard;
• test at least one unit from each model family of clothes washers, clothes dryers and dish washers prior to release into the Australian market; and
• establish and implement an upgraded Trade Practices Compliance Program.