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Australian courts fine LG $110,000 for misleading consumers about burn-in

TV burn-ins continue to be a frequent headache for LG Electronics. The South Korean firm has had to deal with several incidents in the past, in which its burnt in OLED offerings had to be replaced. For those unaware, images that appear for a long time on a television screen and end up being permanently plastered over it are known as burn-ins.

The case made it to the Federal Court in 2015, with the two customers claiming that Australian consumer law should require LG to repair the TVs, regardless of their warranties. Australian law specifies that products be “safe, lasting and with no faults,” and notably, “match any demonstration model or sample you asked for.” The TVs in question had been displayed in-store with no burn-in, and after one year of normal use, should be expected to function the same. An unfavorable ruling for LG and an AU$160,000 ($110,000) fine has been imposed.

“Consumer guarantee rights are separate to warranties offered by manufacturers and will always be available to consumers who find they have been sold a faulty product,” ACCC Commissioner Sarah Court said. “The Court’s decision is a reminder that making misleading statements about consumer guarantee rights, even to only one or two consumers, can result in penalties being imposed.”

LG’s OLED televisions now handle burn-in much better, though not perfectly. For reasons related or otherwise, OLED sales have kept growing but at a slower pace than anticipated. Half a million units were sold in the first half of 2017, 1.1 million units sold in the first half of 2018, and 1.3 million units are expected to be sold in the first half of this year.

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