Samsung lands in hot water
Australia's competition regulator alleges electronics giant misled consumers by promoting its Galaxy smartphones as water resistant
Stocks impacted: Samsung Electronics Co Ltd’s (005930.KS)
Samsung Australia is being taken to the Federal Court by the Australian Competition and Consumer Commission for allegedly misleading Australian consumers by advertising that its Galaxy phones are water resistance. Samsung has promoted its Galaxy phones being used in swimming pools and oceans in adverts across the world. It claims its phones are water resistant for 30 minutes up to a depth of 1.5 metres. According to ACCC, these ads are misleading as the phones have not been sufficiently tested in Australia. By the way, the small print on Samsung's website reveals that its Galaxy S10 phones were only tested in "fresh water" conditions (not in the ocean and swimming pools). Samsung on its website said it stands by its advertising, complies with Australian law and will defend the case. The company's stock may come under pressure on the news.
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