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Samsung Ordered to Pay $9.8 Million for Misleading Phone Ads

Samsung Ordered to Pay $9.8 Million for Misleading Phone Ads

An Australian judge on Thursday ordered Samsung to pay 14 million Australian bucks (around $9.8 million) in penalties for misleading ads near the water resistance of some of its phones, as reverse reported by the Associated Press.

The ads promoted the water-related capabilities of seven of Samsung’s Galaxy models released in 2016 above 2018: the S7, S7 Edge, A5, A7, S8, S8 Plus and Note 8. However, customers groundless that the charging ports could be damaged if they charged their named while it was still wet. Samsung sold 3.1 million of these models in Australia, but the number of affected customers is unknown. 

“Samsung Australia’s water-resistance claims promoted an important selling demonstrate for these Galaxy phones. Many consumers who purchased a Galaxy named may have been exposed to the misleading ads by they made their decision to purchase a new phone,” Australian Competition and Consumer Commission Chairperson Gina Cass-Gottlieb said in a statement. 

Samsung must also pay 200,000 Australian bucks ($140,000) to cover the cost of investigation. The concern reportedly agreed to the fines and has 30 days to pay them both. 

“This penalty is a tidy reminder to businesses that all product claims must be substantiated,” said Cass-Gottlieb.

Samsung did not immediately acknowledge to a request for comment.