Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), is taking LG Electronics Australia Pty Ltd (LG) to the Federal Court. The ACCC alleges that LG informed their customers that the manufacturer’s warranty limited remedies for faulty LG televisions.

Not only that, but the ACCC claims that LG misrepresented consumers’ entitlements, and told them that they were only entitled to a remedy if they had paid the costs for assessing the failure of the television.

LG informed consumers that they were entitled to have their television repaired, but not entitled to a refund or replacement, and that the consumer would have to pay the cost of repair.

LG claimed they had no further obligations after the expiry of the manufacturer’s warranty, but any assistance it provided in relation to the faulty televisions was an act of goodwill.

What is a Consumer Guarantee?

The Australian Consumer Law (ACL) ensures that each product comes with a consumer guarantee that the product is of acceptable quality. The ACL protects consumers from defective products. 

The key point here is that the manufacturer’s warranty does not replace the consumer guarantee and that the manufacturer’s warranty is in addition to the consumer guarantee. The consumer guarantee does not expire when the manufacturer’s warranty expires, and it usually applies for a much longer period.

Under the consumer guarantee, consumers are entitled to have a faulty good refunded, replaced or repaired at no cost.

How Did LG Mislead Consumers?

When a manufacturer’s warranty expires, consumers are still able to claim repairs, refunds or replacements under the consumer guarantee. This is very different to LG telling consumers that they were only able to have the television repaired and that the consumer would have to pay the costs for repair.

By telling their customers that the manufacturer’s warranty limited the available remedies, LG was essentially removing the consumer guarantee and the rights built in by the ACL.

What Do We Learn?

This isn’t the first time the ACCC has initiated proceeding against LG for misleading or deceptive conduct. In 2006, the ACCC took action against LG for misleading consumers about the existence and duration of statutory warranties. This time around, the ACCC is seeking from the Federal Court: 

  • Injunctions, 
  • Penalties, 
  • Corrective notices, 
  • Legal costs, and 
  • A trade compliance program. 

The ACCC takes the ACL and misleading conduct very seriously and appear determined to discipline LG. 

Australian Consumer Law confers a number of rights and obligations on businesses and consumers. It is important to have a firm understanding of where you stand. As a business owner, make sure you are complying with the ACL and not engaging in misleading conduct. Ensure that any Terms & Conditions you offer your customers reflect the ACL and do not try to contract out of your obligations.

Questions? Get in touch on 1300 544 755.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Dhanu Eliezer
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy