LG Electronics Australia Pty Ltd - s.87B undertaking

LG Electronics Australia Pty Ltd (LG) is an importer and wholesaler of electrical appliances, including airconditioners.

Certain airconditioners are required to display energy efficiency labels and meet Minimum Energy Performance Standards (MEPS). LG published energy efficiency ratings in, among other things, promotional and advertising materials.

As part of regulatory requirements check tests are carried out on a selection of airconditioner models to determine the accuracy of the claimed energy efficiency ratings.

Check tests conducted on behalf of the New South Wales Department of Energy, Utilities and Sustainability and Energy Dafe Victoria found that the energy efficiency of five LG airconditioners was less than 90% of the claimed energy efficiency. In relation to the LGNL6081BL/LBUL608080BL check tests revealed it did not meet MEPS.

After conducting an investigation the ACCC found that, in relation to five airconditioners, LG misled consumers in breach of sections 52 and 53(c) of the Trade Practices Act 1974.

As part of this undertaking LG will:

• offer consumers who purchased an affected airconditioner model rebates for the increased cost of electricity;

Affected Model                      Rebate Amount

LST182H-2                            $71.54

LST244T-2                            $208.28

LST244H-2                            $198.22

LBN6081BL/LBUL6080BL           $436.77

LSZ182M-4                           $89.42

• only publish or advertise the energy efficiency rating of an airconditioner if an independent laboratory has tested the airconditioner according to the Australian Standard;
• publish corrective notices in major city newspapers on two occasions and on the LG website, write to LG retailers that purchased the affected models   advising them of the rebate offer; and
• review and upgrade its trade practices compliance program.