Samsung Fined $9.8 Million in Restitution for Deceiving Its Smartphone Users

South Korean tech giant was ordered to pay 14 million Australian Dollars (about 9.8 million US Dollars) within 30 days by Australian Federal Court Justice Brendan Murphy. The brand will also be required to pay an extra 140,000 US Dollars to cover the costs incurred by the Australian Competition and Consumer Commission, which started the probe four years prior.

Highlights

  • South Korean tech giant was ordered to pay 14 million Australian Dollars within 30 days.
  • These models couldn't have withstood these conditions in the real world because they were merely water resistant and not water proof.
  • The brand will also be required to pay an extra 140,000 US Dollars.

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Samsung

The Samsung Group is a multinational conglomerate of manufacturers with its main office in Samsung Town in Seoul, South Korea. It is the largest South Korean chaebol and consists of multiple connected enterprises, the majority of which are unified under the Samsung brand (business conglomerate). Samsung has the eighth-highest worldwide brand value as of 2020.

For allegedly deceiving its customers about one of the functions on its Galaxy smartphones, Samsung Electronics has been charged in Australia. And the business will now have to pay millions of US dollars.

More About the Business's Deception

For those who are unaware, the South Korean tech giant was ordered to pay 14 million Australian Dollars (about 9.8 million US Dollars) within 30 days by Australian Federal Court Justice Brendan Murphy. The brand will also be required to pay an extra 140,000 US Dollars to cover the costs incurred by the Australian Competition and Consumer Commission, which started the probe four years prior. The business was penalised for giving its smartphone users false information about the water resistance of its Galaxy devices.

These deceptive statements about seven Galaxy phones' water resistance were in nine commercials that aired between 2016 and 2018. The Galaxy S7, Galaxy S7 Edge, Galaxy A5 (2017), Galaxy A7 (2017), Galaxy S8, Galaxy S8 Plus, and Galaxy Note 8 are among the devices featured in these advertisements. The smartphone manufacturer has agreed to pay the penalty amount and is now not contesting these claims.

The sanctions were imposed as a result of Samsung demonstrating the use of its cellphones in seawater and swimming pools. These models couldn't have withstood these conditions in the real world because they were merely water resistant and not waterproof. Additionally, in one scenario, they were even charging while wet, which would have ruined the charging ports on these devices.

Reported By

Bhavya is very keen on learning about developments that take place in the tech and telecom industry. She is also someone whom you can sit with and talk about all the Netflix movies and series on science fiction.

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