The Australian Competition and Consumer Commission has initiated legal proceedings against LG Electronics Australia Pty Ltd in the Federal Court after the company allegedly made false promises to consumers about their rights regarding LG products.

According to the ACCC, LG allegedly misrepresented certain aspects about defects in its TV sets. The company told retailers, repairers or consumers that the remedies available to consumers were limited to the LG manufacturer’s warranty.

The company has also said the consumer that it has no further obligations after the LG manufacturer’s warranty expired. It also conveyed the message that steps taken in relation to the TV sets were an act of goodwill.

Among other allegations, LG has also told consumers that they are only entitled to get the TV set repaired instead of replacement or refund. The consumers are liable to paying the labour costs of any repair, the company allegedly said.

According to ACCC Chairman Rod Sims, the Australian Consumer Law allows consumers to have a consumer guarantee to get a product of acceptable quality when they buy products. The guarantee comes in addition to any manufacturer’s warranty the company provides, he said.

“Although the manufacturer’s warranty only applies for a specified period of time, consumers will often still be entitled under the consumer guarantee to a repair, refund or replacement after the manufacturer’s warranty ends,” Sims said in a media release.

“The ACCC will not hesitate to take appropriate action against manufacturers who misrepresent consumers’ rights and remedies for defective products under the Australian Consumer Law.”

Sims added that the Australian Parliament had given consumers important rights which should not be “undermined by scmisrepresentations.”

The case will be presented for a Case Management Conference before Justice Middleton in the Federal Court in Melbourne at 10:15am on Feb. 5.

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